KOCHI: Finance Minister K N Balagopal has responded to the allegations raised by Union Minister V Muraleedharan in connection with the financial crisis faced by the state. Balagopal alleged that V Muraleedharan's statement was misleading.

"What the Union Minister is saying is untrue. The state is yet to receive Rs 600 crores as welfare pension disbursed by the Centre. It is unfortunate that V Muraleedharan is not taking a stand in favour of Kerala. Centre is blocking capex funds in those, including the Vizhinjam project," Balagopal said.

"The government is making efforts to increase revenue and reduce unnecessary expenditure. Necessary tests are carried out. There has been a good improvement in tax administration. There has been a tax increase of more than 50 percent in two years. Kerala is not a slave to the central government. How can the Centre deny the money that Kerala rightfully deserves? Funds are not disbursed despite the completion of procedures. The funds are being delayed unnecessarily," the minister added.