Kerala Govt Alleges 80% Cut In Central Grant, Minister Blames Rahul Gandhi For 'Petty Politics'

Balagopal alleged that there was a sharp disparity and discrimination in terms of the allocation of funds by the Centre to Kerala.

Kerala Finance Minister KN Balagopal revealed that the state was in an extremely dire financial situation due to lack of funds from the central government on Friday. Balagopal alleged that there was a sharp disparity and discrimination in terms of the allocation of funds by the Centre. He said that the state received only less than 30% from the Centre. The state's financial situation came to the fore only after Kerala CM Vijayan announced that around 60 lakh people in the state would be receiving a done of Rs 2,300 on the occasion of Onam.

Talking to ANI, KN Balagopal, Kerala Finance Minister said, "This time there is 80% cut in grant from Centre. That is a problem we are facing and out of the total revenue income, earlier Kerala was getting around 45% from the part of Union government, and 45% from the state. That is the all India average."

"Now Kerala is paying around 70% and only less than 30% is coming from the Centre. There is a sharp disparity and it is discrimination," he said. 

Kerala government criticised Congress for playing "petty politics" over the issue and Rahul for not standing up against the Centre. Balagopal said, "UDF has around 18 MPs in Lok Sabha…but they are not acting in the interest of the people. Rahul Gandhi is an MP from Kerala but Congress is playing petty politics on issues of Kerala."

Kerala Congress, however, accused the government of the alleged mismanagement of finances and criticised the ruling for blaming the Opposition party. Congress MLA Ramesh Chennithala said, "Kerala Finance Minister KN Balagopal has completely failed in the management of finances in the state. Kerala is in a debt trap, govt has no idea how to get out of it...still, he is blaming the Congress MPs, I wonder how he can blame Congress for this issue, we are not ruling the state.”

“As and when the time comes we raise issues in the Parliament, our MPs are very local in Parliament...as per the financial commission's report Kerala needs more support from the Centre...but the Centre is not accepting that then what can we do about it?.... has the Kerala CM gone to PM and asked for assistance?" he questioned. 

Kerala BJP chief Surendran said, "This is a false narrative, CPI(M) & state's Finance Minister are spreading lies...Modi govt is supporting Kerala in a big manner, tax share and grant increased 5 times. The state govt has miserably failed, the finance management of the state is a disaster and he (KN Balagopal) is responsible."