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The Hindu
The Hindu
National
The Hindu Bureau

Kerala’s finances in mess despite manifold increase in Central allocation, says Union Minister Meenakshi Lekhi

Misgovernance, corruption, and nepotism were the reasons for the precarious financial condition of Kerala. But, a false narrative that the Centre was denying the rightful share of funds to the State was doing the rounds, said Union Minister of State for External Affairs and Culture Meenakshi Lekhi in Kochi on Friday.

During the past decade, the Centre gave ₹1.56 lakh crore by way of tax allocation to Kerala. It was 236% more than the ₹46,303 crore that was given during the decade spanning 2004-2014. It was apart from the grant-in-aid of ₹1.43 lakh crore during the 2014-2024 period, which was a similar 458% increase over the ₹25,000 crore given to the State during the 2004-2014 period. All that was apart from the additional instalments given for specific needs such as tacking the pandemic. People must ask the State government where all that money had gone, she said.

“Likewise, there was a six-fold increase in the allocation for Kerala’s railway development during the past decade. But the State’s ineptitude in handing over land for projects like doubling rail track [through Alappuzha] and for highway development is stifling infrastructure development. All this is proof that the State government has failed the people, despite the Centre allocating sufficient funds. It also failed to upskill youth and augment basic infrastructure, although Keralites are the most skilled and educated in the country. The State’s finances are in a mess, despite the increase in Central allocation, massive remittances from its people settled abroad, and people purchasing the highest quantity of gold in the country,” said Ms. Lekhi.

Kerala is suffering due to rampant drug abuse among youth, while 35% of the population have mental health issues. People here are rich, while the State is bankrupt owing to misgovernance, corruption and over 70% of the revenue being spent on salary for government officials. Both the LDF and the UDF failed to redress problems facing different sections of society, including farmers. Even basic but crucial issues such as waste management were in a mess, the Minister alleged.

During the past decade, a total of 42% of the tax collection was shared with States, as per the recommendation of the 15th Finance Commission. It was 30% when the United Progressive Alliance was in power, added Ms. Lekhi.

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