Kerala CM Pinarayi Vijayan Vows State Progress Despite Central Financial Squeeze
Kerala CM Vows Progress Despite Central Financial Squeeze

Kerala Chief Minister Pinarayi Vijayan Criticizes Central Neglect, Pledges Independent Progress

In a strong statement highlighting the financial challenges faced by Kerala, Chief Minister Pinarayi Vijayan declared that the state intends to progress on its own strength without relying on external mercy. This remark was made during the inauguration of the 5th Kerala Studies Congress, organized by the AKG Research Centre in Thiruvananthapuram on Saturday.

Central Government Accused of Financial Squeeze

Vijayan pointed out that the central government is financially squeezing Kerala, despite the state's significant contributions. He revealed that Kerala, which accounts for 2.59% of India's population, receives only 1.92% of the tax share. This share has drastically reduced from 3.9% during the 10th Finance Commission period.

"There was also a cut in the loan share," Vijayan emphasized, adding that in the last four years, the Centre has denied Kerala around Rs 2 lakh crore. The state lost approximately Rs 10,000 crore due to changes in the tax share alone.

Kerala's Resilience and Achievements

Despite these pressures, Vijayan highlighted Kerala's remarkable progress. He noted that only 20-25% of Kerala's revenue comes from the central share, compared to up to 80% for some other states. "Despite this pressure, Kerala is achieving progress, which is noteworthy," he said.

The Chief Minister pointed to concrete evidence of this advancement: "The state rose from the 11th to the 6th position in the states' per capita income rankings. These are proofs that we are on the right path of development."

New Strategies for Resource Mobilization

In response to the increasing neglect by the central government, Vijayan called for exploring new possibilities for resource mobilization. "The aim is to generate more revenue through resource mobilization," he stated, emphasizing the need to make sectors like agriculture and innovative industries more revenue-generating.

He outlined the Left Democratic Front (LDF) government's mission: "to double Kerala's gross domestic product in the next few years and to elevate each family's standard of living to a level close to that of developed countries."

Vision for a Developed New Kerala

Vijayan expressed confidence that the 10 years of LDF governance have laid a solid foundation for these goals. "A clear vision has been formed about what new Kerala should be in all aspects of life," he said, acknowledging the economic challenges ahead, including financial constraints imposed by the Centre, debt restrictions, and debt sustainability issues affecting states in general.

However, he noted that Kerala has continued investing in critical areas:

  • Education
  • Health
  • Infrastructure development
  • Industry

"Secularism and social harmony have become the most important components of Kerala's new development," Vijayan added.

Future Challenges and Aspirations

The Chief Minister identified the next challenge as updating the Kerala development model according to contemporary needs. "The future Kerala should be the Kerala of our children's dreams," he said, envisioning a state that moves beyond being just a consumer state.

He outlined ambitious goals for Kerala's transformation:

  1. Create world-class products and services
  2. Become a hub of human resources capable of contributing globally
  3. Transition from an era of brain drain to an era of brain gain

Vijayan concluded by reaffirming the commitment to strengthen Kerala's social welfare interventions, which he described as a model for the world, while creating a developed new Kerala that stands on its own merits.