Kerala Chief Minister Pinarayi Vijayan accuses Centre of financial squeezing through ‘unconstitutional’ means
The Hindu
Kerala Chief Minister Pinarayi Vijayan says Kerala is fighting to preserve federalism in Supreme Court against Centre's "discriminatory and vindictive actions" to financially squeeze the State. Pinarayi Vijayan terms Kerala Government’s decision to approach Supreme Court against Union Government ‘a historic fight’ to preserve federalism.
Unleashing a full-scale attack for “squeezing” Kerala financially through alleged unconstitutional and illegal means, Chief Minister Pinarayi Vijayan has termed the State Government’s decision to approach the Supreme Court against the Union Government “a historic fight” to preserve federalism.
Addressing the media at Kuravilangad in Kottayam district on December 14 (Thursday) in connection with the ongoing Navakerala Sadas, Mr. Vijayan said the Centre’s “discriminatory and vindictive actions” on the financial front were aimed at throwing Kerala into dire straits. The petition (in Supreme Court), according to him, seeks to restore the “Constitutional rights of State Governments.”
“The key aspects highlighted in the petition are the unconstitutional interference by the Centre in the State’s financial affairs, the unconstitutional cuts to eligible borrowing limits and inclusion of the State’s public account liabilities and borrowings by State-owned enterprises in the borrowing limit etc., among other things,” he said.
The plea also seeks to prohibit the Central measures that encroach upon the States’ Constitutional prerogatives by the exercise of powers not contained in the Constitution, said Mr. Vijayan.
Attributing the current financial squeeze experienced by Kerala to a failure by the Centre to provide GST compensation and the reduction in revenue deficit grant, Mr. Vijayan said that though Kerala had tried to overcome this by increasing tax and non-tax revenue and prioritising expenditure, the economic impact was more than what the State could bear.
“The Centre, which imposes strict borrowing limits on the States, does not do it for itself. While using the public account uncontrollably to deal with fiscal deficit, it is not letting the States to do so in a reasonable manner,” pointed out Mr. Vijayan.
He also urged Governor Arif Mohammed Khan, who has sought a report on a demand to impose financial emergency in Kerala, to seek an explanation from the Centre instead. But since the Governor has sought a report, the government will be responding to the same.
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