INDIA
Kerala CM Leads Protest in Delhi Against Centre’s ‘Financial Strangulation’ of States
Image Courtesy: Deepak Jha
New Delhi: Led by Kerala Chief Minister Pinarayi Vijayan, the Left Democratic Front (LDF) ministers and MLAs began a dharna at Delhi’s Jantar Mantar on Thursday against the BJP-led central government’s “financial strangulation” of the state.
Kerala’s protest comes a day after a ‘Chalo Delhi’ protest led by Karnataka Chief Minister Siddaramaiah and Deputy Chief Minister D K Shivkumar, ministers and Congress MLAs on similar issues.
“We are here to register our protest against the Central government over tax devolution”, said Vijayan, while addressing the gathering in Jantar Mantar. The Chief Minister thanked all Opposition party leaders for their “support”, and reiterated that the Central government had made decisions without “seeking states’ opinion”.
Vijayan said: "We have come together to register our strong protest and preserve the federal structure of India. Today, we are making the beginning of a reunited fight that would herald the dawn of ensuring equal treatment of the states. This fight will also strive to maintain balance in the Centre-State relation. 8th Feb is going to be a red letter day in the history of India."
According to News18, several Opposition leaders had joined the protest, such as DMK leader and former finance minister Palanivel Thiagarajan, National Conference leader Farooq, Abdullah, Indian Union Muslim League leader Abdul Wahab.
Aam Aadmi Party leaders and Delhi and Punjab Chief Ministers, Arvind Kejriwal and Bhagwant Mann, also joined the protest.
Kerala has been advocating better fiscal federalism to ensure that state governments are provided with their rightful share of revenue. It has also approached the Supreme Court against the borrowing limit imposed by the Union government and “violation” of fiscal federalism.
The state government has claimed that the Centre had made a curtailment of Rs 57,400 crore in state receipts in the current fiscal, and the state was not getting its due share from the tax collected by the Centre. Also, the state said it was being deprived of an additional Rs 12,000 crore because of cessation of Goods and Services tax compensation, thereby squeezing a major source of revenue.
Several state governments, mostly non-BJP ruled states, including Karnataka, Punjab, Tamil Nadu have expressed similar concerns over the centralisation policies of the BJP-led Union government and have demanded a fair share of taxes, which is the right of all states.
LDF Parties Hold Rallies, Solidarity Gatherings Condemning ‘Neglect’ of Kerala by Central Govt
The Left Democratic Front (LDF) parties in Kerala held rallies and street corner meetings across the state in solidarity with the chief minister and the people's representatives protesting against the alleged neglect by the Union government. The LDF members took out rallies and held meetings in front of the local self-government (LSG), condemning the alleged economic strangulation of Kerala. The solidarity gatherings were held in around 1,500 centres simultaneously.
The LDF leaders urged the Union government to end the discriminatory attitude towards Kerala and provide the deserving tax share and pending grants. The Bharatiya Janata Party (BJP)-led central government and the United Democratic Front (UDF) were equally criticised for their neglect of the interests of the state. Though the national leadership of the Congress supported the LDF protest in Delhi, the state leadership took the opposite stand and stayed away from the protests.
The government of Kerala has been accusing the central government of reducing the borrowing limits, reducing the tax share to the state, and holding on to grants for centrally sponsored schemes for the financial constraints of the state. The LDF parties visited households and held rallies, and solidarity gatherings on February 8 when the state Cabinet and the LDF members of parliament and Assembly held a protest in Delhi for the same cause.
A K Balan, former minister and central committee member of the Communist Party of India (Marxist) [CPI(M)], accused the Congress and BJP of working against the developmental aspirations of the state. Inaugurating a solidarity gathering in Palakkad, he said, “The chief minister convened an all-party meeting before the series of agitation programmes to launch a united protest to safeguard the financial rights of the state. Though the Indian Union Muslim League (IUML) was willing to participate in the programmes, the Congress leadership prevented them, showing their utter disregard for the demands of Kerala.”
The leaders of the LDF, including from the Communist Party of India (CPI), Kerala Congress (Mani), Nationalist Congress Party (NCP), Indian National League (INL), Congress (Secular), Janata Dal (Secular) participated in the gatherings.
The LDF government has accused the Union government of unilaterally ending the GST competition and revenue deficit grants despite the COVID-19 pandemic having a telling effect on the economy of the state, which also faced two historic floods in four years. The Union government has also not released grants and aid for several central schemes citing co-branding issues, affecting the implementation of the vital schemes. “While the CPI(M) is protesting seeking financial federalism for all the states irrespective of political aspirations, the UDF has joined hands with the BJP in opposing the demands of Kerala. The Congress government of Karnataka, led by the chief minister and deputy chief minister, had led a similar protest on February 7”, Balan said.
The LDF government has been demanding the time-bound release of funds under central schemes, exclusion of loans of the Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pension Limited (KSSPL) from public debt, besides honouring the recommendations of the fifteenth finance commission. The government has claimed that the losses to the state amount to Rs 1,07,000 crores between 2017 and 2023 due to the seizure of several aids to the state. “The Union government led by the BJP has been reducing corporate and wealth tax for the benefit of their class colleagues, resulting in the burdening of the working class due to the imposition of indirect taxes. The tax share of states has reduced due to the drastic increase in cess and surcharges which go only to the centre”, Balan added. The protest saw widespread participation from the supporters of LDF, members of trade unions, youth, women, and student organisations.
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