Kerala: Pinarayi Govt To Move SC Against Centre's Alleged Encroachment On Fiscal Federalism

In a press conference on the final day of the Cabinet's State-wide public outreach program, Navkerala Sadas, Kerala Chief Minister Pinarayi Vijayan announced that the state would move the Supreme Court against what he perceives as the Centre's encroachment on fiscal federalism.

Accusing the Centre of strangulating Kerala financially, Chief Minister Vijayan asserted that, by conservative estimates, the Union Government owes the state approximately Rs 64,000 crores.

As reported by The Hindu, he cited various measures taken by the Centre, including halting GST compensation, reducing Kerala's revenue deficit grant, limiting the state's borrowing capacity, and diminishing the provincial government's revenue share from the divisible pool.

Additionally, he accused the Centre of withholding its stake in major infrastructure projects in Kerala.

Chief Minister Vijayan also emphasised the adverse impact of the Centre's actions on Kerala's development and its ability to promptly disburse welfare pensions to approximately 62 lakh beneficiaries.

He stated that the Cabinet's 36-day outreach program aimed to inform the public about the Centre's refusal to uphold federal principles and to dispel misinformation spread by the media.

As the state gears up for legal recourse, Chief Minister Vijayan remains steadfast in his commitment to challenging what he perceives as infringements on Kerala's fiscal autonomy by the Centre.