Central policies are challenging state government, Kerala's credit limit is being reduced: CM Vijayan

THIRUVANANTHAPURAM: Chief Minister Pinarayi Vijayan said that the central policies are challenging the state government's efforts to create a new Kerala. In a press conference, Pinarayi Vijayan pointed out that the economic crisis caused by the central government's policies is tightening the state even though it has achieved good results in its own tax revenue and domestic production. The Chief Minister also accused the opposition, which should stand for the people against these bad policies, and attacking the government from the anti-people side.

"The central government has reduced Kerala's borrowing limit with retrospective effect from 2021-22 by including loans taken by independent institutions in the state's borrowing limit. Due to this, the total credit limit for Kerala has decreased by Rs. 6000 crore. The Union Finance Ministry is overturning the recommendations of the Finance Commission. The 15th Finance Commission has not said that the debt of special purpose entities like KIIFB will be included as debt of the state. Kerala has been asked for 25 percent amount to acquire land for the development of National Highway 66. Rs 5854 crore has been funded through KIIFB for this purpose. The Centre also deducted this amount from the borrowing right of the state," he said.

"The proportion of tax resources to be distributed to the states has declined from 42% during the 14th Finance Commission to 41% during the 15th Finance Commission. The state demanded that the tax to be apportioned to the states be increased to 50% but was not considered."

"The central government's approach is to deny Kerala the amount it deserves by interfering with the issues and criteria of the Finance Commission."

"Even though the central share is nominal, the situation is that central government branding is compulsory. The state government pays the full amount to most of the beneficiaries in the LIFE scheme and spends the lion's share of the amount on the few centrally assisted households. Citing the nominal amount that Kerala gets under the central PMAY scheme for building houses under the LIFE scheme, the central government is pressing to make branding mandatory."

"Houses built as a part of the Life Plan are owned by the benefactor. No one else has the right to it. After the house is built, writing down that it was built this way and with the help of certain people is an attack on the self-esteem of the home owner. No such labeling is practiced in Kerala. The state government will not be ready for it no matter who forces it," the CM said.