Kerala blames Centre for financial strain on states

Kerala's Finance Minister, K N Balagopal, criticized the central government's fiscal policies on Monday. He said these policies are putting financial pressure on states, including Kerala. He noted that even states with strong economies face significant financial difficulties. Balagopal pointed out that Kerala has seen a 20% decline in funds allocated by the central government. Despite this, the state has needed to increase its spending. He argued that if Kerala could manage its own financial resources, it would not be in such a tough situation. He highlighted that Kerala received only ₹ 35,000 crore from the central government's total allocation of ₹ 25 lakh crore for states. He believes the state should have received ₹ 75,000 crore instead. Balagopal also claimed that states are being forced to promote projects funded by the central government. The minister expressed his worries that the rights of all states are threatened. He mentioned that other states, like Telangana, Himachal Pradesh, and Karnataka, are facing similar financial issues due to central policies. Balagopal defended the state's financial management against opposition claims of mismanagement. He stated that the current government has improved revenue and spending, with a high completion rate of planned expenditures. He also shared that Kerala's tax revenue has grown significantly in recent years. The Kerala Appropriation Bill 2025 was passed after a voice vote led by Speaker A N Shamseer.