Kerala Chief Minister Challenges Amit Shah's Funding Claims
Thiruvananthapuram witnessed a sharp political exchange on Monday as Kerala Chief Minister Pinarayi Vijayan firmly rejected Union Home Minister Amit Shah's assertion. Shah had claimed that the BJP government at the Centre provided more funds to Kerala compared to non-BJP administrations. Vijayan countered this directly, stating that the distribution of central funds through finance commissions represents a constitutional right, not an act of generosity.
Constitutional Entitlement, Not Generosity
Pinarayi Vijayan emphasized that states receive their share of central funds based on constitutional provisions. He expressed frustration over what he described as excessive political advertising on the issue. The Chief Minister accused the Centre of interfering with the Finance Commission's established prerogatives. This interference, he argued, aims to deny Kerala the funds it rightfully deserves under the law.
Detailed Financial Data Shows Decline
The Chief Minister presented specific figures to support his argument. During the 14th Financial Commission period, Kerala received Rs 16,833 crore in 2017-18 and Rs 19,038 crore in 2018-19. However, under the 15th Finance Commission, the amounts were Rs 11,560 crore in 2020-21, Rs 17,890 crore in 2021-22, and Rs 18,961 crore in 2022-23.
This data clearly indicates a reduction in tax share compared to the previous commission's period. Vijayan noted that such a decrease had never occurred before in Kerala's history. He stressed that this trend highlights systemic issues rather than improved funding.
Revenue Deficit Grant Controversy
A significant portion of the 15th Finance Commission grant consists of revenue deficit grants. These grants provide special financial assistance to cover revenue shortfalls in states. When the 15th Finance Commission was appointed, the Centre initially argued against providing such special grants for states facing revenue deficits.
Kerala, along with all other states, strongly opposed this discriminatory criteria. The state government convened a conference of finance ministers from southern states to rally against the proposal. Eventually, the Centre yielded to the stiff opposition from various states.
Rightful Claim, Not Charity
Vijayan reiterated that the revenue deficit grant represents a state's constitutional right, not a benevolent gift. He explained that without this grant, the share received by states would be substantially lower. States demanded and secured their rightful claims through persistent advocacy. No one provided these funds out of generosity, he asserted.
NITI Aayog CEO's Revelation
Adding to the controversy, NITI Aayog CEO BVR Subrahmanyam made a revealing statement. He claimed that Prime Minister Narendra Modi pressured the Finance Commission to reduce the tax share of states immediately after taking office in 2014. Vijayan referenced this revelation, challenging Amit Shah to respond to such factual disclosures rather than making what he called unfounded claims.
The Chief Minister's statements underscore ongoing tensions between the Kerala government and the Centre regarding financial allocations. This debate touches on fundamental principles of federal finance and state rights within India's constitutional framework.
