THIRUVANANTHAPURAM: Former Minister Thomas Isaac has alleged that the UDF and BJP are attempting to conceal the fact that the central government is responsible for the financial crisis in the state of Kerala. He stated on his Facebook page that the financial crisis in Kerala is a result of central government interference, and both the UDF and BJP have joined forces to propagate false information to mask this reality.

Isaac also inquired about whether the state is receiving the revenue deficit grant mentioned by the Leader of the Opposition, V D Satheesan in the Assembly. Furthermore, he added that the central government has committed to clearing the Rs 5,500 crore owed to the state.

Facebook post by Thomas Isaac

The cause of Kerala's financial crisis is the interference of the central government. The UDF and BJP have united in spreading false propaganda to conceal this fact. The BJP's social media campaign has given the most attention to select remarks made by Opposition leader Mr V D Satheesan during the adjournment motion. What they found particularly appealing was his statement that there was no discrimination against Kerala and that Kerala received the highest revenue deficit grant.

Kerala received a revenue deficit grant of Rs 53,000 crore, which is higher than any other state. Contrary to what some may believe, this is not a special favour from the central government; it is a decision of the Finance Commission. The central government's stance is that no special grants should be provided to any state to cover revenue deficits. This was a highly contentious issue during the 15th Finance Commission. The Central Government requested the Finance Commission to review the continuation of the Revenue Deficit Grant. The message was clear for anyone who read the statements on the matter: the Revenue Deficit Grant should not continue.

It was the Kerala government that fought against this consideration. Another major issue that sparked substantial protests was the 15th Finance Commission's shift from using the 1971 population as a benchmark to the 2011 population. In response to the anti-federal sentiment evident in the discussions of the 15th Finance Commission, the Kerala government took the initiative and organized seminars in Thiruvananthapuram, Puducherry, Vijayawada and Delhi. Even Congress finance ministers attended these seminars. I had discussions on this matter with the then Leader of the Opposition, Ramesh Chennithala and Congress leaders at the Centre multiple times. The seminar in Delhi was inaugurated by former Prime Minister Dr Manmohan Singh.

The change in population norms had become a major political issue in Tamil Nadu. As a compromise, the grant to cover the revenue deficit was reinstated. While the Finance Commission recommended an allocation of Rs 53,000 crore to Kerala, it would decrease significantly in the following two years and vanish entirely in the fourth year. Consequently, in 2023, Kerala ceased to receive this grant. It is now that Mr V D Satheesan is bringing up the grant received three years ago!

The questions that Mr V D Satheesan needs to answer are as follows: Is Kerala currently receiving the revenue deficit grant? Is the assistance from the central government in 2023 less than in 2022? Is it decreasing further? Can't the state secure the Rs 5,500 crore owed by the central government? Can a commitment be made with the Kerala government to at least recover this amount?