Political positions and opposition of Kerala: Rs 16,000 crore lost or withheld by Central government 

THIRUVANANTHAPURAM: Kerala has lost more than Rs 16,000 crore from various central schemes due to rigid political positions and opposition. This includes the delay in signing the PM-USHA scheme, the delay in asking for UGC salary revision arrears, the dispute over additional funds in Ayushman Bharat and the KSEB argument in smart meter, which led to the delay in the central share in several phases. The temporary freeze after signing may delay the PM SHRI fund of Rs 1466 crore also. This is at a time when the state is struggling to provide welfare schemes and employee benefits without interruption in the midst of a severe financial crisis.

The first phase of funds were not received due to the delay in signing the PM-USHA scheme for universities. The Rs 11 crore allocated to four colleges was also lost due to the slowness of the procedures. Kerala lost 160 crores for Ayushman Bharat, an insurance scheme that provides free treatment of Rs 5 lakh to the poor. Kerala had integrated the central scheme with its own health insurance program, the Karunya Arogya Suraksha Padhathi (AB-KASP). However, disputes were raised citing financial reasons and a lack of clear guidelines when Ayushman Bharat was revised and a top-up medical assistance of Rs 5 lakh was announced for those over 70. Kerala is yet to implement the revised central scheme.

Losses in CapEx too

• The Capital Expenditure Fund (CapEx) launched in 2020 is a 50-year interest-free loan scheme for infrastructure development in states.
• Kerala received Rs 1954 crore in the first year. The Center withheld the allocation from 2022-23, saying that Kerala was not cooperating in meeting the norms. Kerala received nothing when Rs 1,49,484 crore was disbursed in 2024-25.

9000 crores in smart meters

More than 9000 crores will be lost due to non-implementation of smart meters in the electricity sector. 2600 crores in smart meters, 6600 crores for the second phase of modernization of the distribution sector. The obstacle is the opposition of the Left unions to awarding the smart meter operation contract to the private partnership Rural Electrification Corporation.

Amount Kerala lost (in crores)

CapEx project........................................5000

PM-USHA (Phase 1)................................260

PM SHRI ..........................................1466

UGC salary revision...........750

Electricity reform.................................9000

Ayushman Bharat 70 Plus..............160

Total................................................16,636