Centre's financial restrictions threaten cooperative federalism: Kerala FM

Thiruvananthapuram, Mar 5 (PTI) Kerala Finance Minister K N Balagopal said that the financial disparities imposed by the BJP-led Union Government on Kerala go beyond politics, posing a significant challenge to cooperative federalism, and called on the Central government to ensure fair treatment for all states.

"The BJP-led Union Government's financial discrimination against Kerala is not just a political slogan but a question of cooperative federalism, and it is the duty of the Central government to protect the interests of the states," the minister told PTI in an interview on Monday night.

Balagopal, who has been challenging the BJP-led Centre for its alleged discrimination against Kerala on financial matters for quite some time, said that the issue has now been raised by other non-BJP ruled states, including Congress-ruled Karnataka, as the states are feeling strangled by the Centre.

"It's more than a political issue. This is a question of cooperative federalism," Balagopal said, when asked whether the alleged discrimination by the Centre against the states on financial matters would be a poll issue for the INDIA formation in the upcoming Lok Sabha elections.

The Kerala minister's statement came in the context of a case filed by the state government in the Supreme Court seeking directions to the Centre for releasing its rightful share of tax revenue.

"Everything now depends on the Supreme Court verdict. The Union Government has denied us many things; our rights as a state are denied, and finance is crucial for development. Rightful, eligible finances are being denied," Balagopal said.

He expressed hope that the Kerala government would receive a very positive result from the Apex Court, as the case hearing is approaching soon, and said that the state holds a strong hope that justice would protect the interests of the people of Kerala.

He said the central government is considering Kerala's legitimate right to approach the highest judicial forum in the country, the Supreme Court, to get its rightful share, with some kind of "vengeance".

"In the Supreme Court also, the Union Government's stand was that Rs 13,000 crore, for which the state government is eligible this year, will be paid only if the state withdraws the suit. Kerala government's counsel, Kapil Sibal, has informed the court that this is not acceptable," Balagopal said.

He likened the situation to a company asking its employee to withdraw a case that he had filed to get his dues with the Labour Commissioner if he wanted to be paid the present salary.

Balagopal said that people are not going to approve of the union government and its parties if they fail to take care of the states' interests and pay what is due to them.

Stressing that equitable sharing of wealth with the states is very important, the minister highlighted that the Left Democratic Front (LDF) in Kerala has managed to take up this issue as a national concern, rallying others behind it.

With the present financial restrictions, Kerala will have to arrange 75 per cent of its expenditure this year, with the Centre's share restricted to only 25 per cent.

The minister also claimed that Kerala's fiscal consolidation has improved tremendously.

"Both the Union Finance Ministry and RBI have acknowledged this. We are allocating funds for the state's overall development," Balagopal said.

Balagopal rued that Congress leaders in Kerala were "trying to sabotage" the efforts of the Left to unite all parties of the INDIA bloc in its agitation to protect cooperative federalism. This was despite Congress leaders from other parts of the country supporting the Centre's alleged discrimination against non-BJP ruled states, he said.

He was referring to the protest led by Chief Minister Pinarayi Vijayan in New Delhi last month where the Left managed to rally all prominent non-BJP parties from Jammu and Kashmir to Kanyakumari.

However, Balagopal alleged, Congress leaders in Kerala tried to destabilise the movement.

"The AICC president (Mallikarjun Kharge) himself said in Parliament that the issues of Kerala are very genuine. Karnataka Congress leaders said the issues of Kerala are very genuine. But what did the Congress leaders in Kerala do? They only tried to destabilize the movement," the minister said.

He said that this wouldn't escape the notice of people who "understand" that Congress leaders in Kerala cannot stand up for the rights of the people of the state.

The state Congress leaders will have to pay a heavy price for this in the upcoming polls, Balagopal said, and claimed that the people would give a huge victory to the CPI(M)-led LDF.

"The concept of INDIA formation as a political movement is very strong, and we wholeheartedly support it. But in Kerala, people know the Left is genuine and honest, and Congress cannot protect the interests of the people," Balagopal said.

He said that the winning chances of the LDF candidates in Kerala are improving with every passing day.

"People can see the progress. In the recent elections to the local bodies, the LDF improved its position, surpassing even our expectations. It is evident that people are not buying into the false propaganda of the opposition parties," Balagopal said.

He added that despite the financial restrictions, Kerala is managing its finances by enhancing its state-owned tax collection, which has seen an impressive 60 percent growth over the last three years.

Training his guns on the Congress, the minister said that the party's Kerala unit had a wrong attitude which is detrimental to the future generation of the state.

He mentioned that the Congress was under the impression that if they fought for the rightful share of the state in Parliament, the LDF government in Kerala would benefit.

"It is not the LDF government but the people of Kerala who are going to benefit. Not just the people living now, but also our future generations, as we could invest more in our infrastructure development projects," Balagopal said. PTI