Chief Minister Pinarayi Vijayan has slammed the Centre accusing it of choking funds for the State and slashing the borrowing limits of the government.
Accusing the Centre of adopting an antagonistic stance towards Kerala’s development, Mr. Vijayan flagged its purported double standards by delinking the mounting debt of Central agencies like National Highways Authority of India (NHAI) from the Union government’s liabilities. Such a stance contradicted its move to consider Kerala Infrastructure Investment Fund Board (KIIFB)’s loans as part of the State’s debt.
While replying to questions in the Assembly on Tuesday, he questioned the “biased attitude” that had resulted in a cut in the State’s public borrowing limit,
Though it would not affect the ongoing infrastructure development projects, it could impact the State adversely at times when the Centre’s approval is necessary for certain projects, Mr. Vijayan said.
He alleged the non-inclusion of tax revenue earned from various cess and surcharge in the divisible pool meant to be distributed among the Centre and the States reflected upon the blatant violation of fiscal federalism in the country. Currently, these constituted around 19% to 20% of the total tax revenue generated by the Central government.
The Chief Minister also charged the Centre with violating Constitutional principles by introducing legislation in sectors that come under the Concurrent List in the Seventh Schedule of the Constitution, including power, minor ports, minor dams and cooperative banking.
