K N Balagopal criticizes central budget for neglecting state's financial needs

THIRUVANANTHAPURAM: Finance Minister KN Balagopal said that the Kerala account was closed in the budget when the BJP account was opened. The central budget will affect Kerala in a big way. During the pre-budget talks, the state had demanded a financial package of Rs 24,000 crore. Kerala has demanded as a special financial package the amount that it was entitled to under the Fiscal Responsibility Act and which the central government was not allowed to take. Bihar and Andhra have demanded a special package. Additional financial assistance was sought for these states in the name of developmental needs. Kerala sought relief from the loss incurred due to denial of eligible loan. The Center was not ready to listen to it.

Union Ministers and UDF MPs from Kerala should strongly intervene to correct the approach of the Central Government. We should proceed jointly to protect the common interest of Kerala. The central government has adopted such a difficult position towards Kerala.

The central budget documents regarding the central allocation to the states show that the allocation to Kerala is decreasing every year. Kerala is the only country where there is such a decrease. The budget documents published by the Center show that it has come down from Rs 47,000 crore to Rs 33,000 crore and has fallen sharply to Rs 11,000 crore this year. The central share is only 21 percent of Kerala's expenditure. Meanwhile, Bihar gets 71 percent and Uttar Pradesh 47 percent from the Centre. The Indian average is 48 percent. In the budget, the central government has taken the approach of increasing the scope of this kind of disparity. Balagopal also demanded that the central government correct this position.