Kerala Accuses Centre of Anti-Federal Stand Amid Financial Crisis

The Kerala government has accused the Centre of causing an acute financial crisis by undermining the federal structure. State Finance Minister K N Balagopal highlighted that Centre's policies impact Kerala's infrastrural initiatives. Despite challenges, the Kerala Infrastructure Investment Fund Board (KIIFB) continues to finance numerous projects across diverse sectors.

The Kerala government on Monday accused the Centre of adopting a stand against the country's federal structure, attributing it to the acute financial crisis the state has been enduring.

State Finance Minister K N Balagopal alleged that this 'financial plight' was artificially created by the union government. During an Assembly session, he responded to inquiries by stating that the state's resource mobilization efforts were hindered due to the Centre's treatment of KIIFB's funds as part of Kerala's overall borrowing. Despite these restrictions, the state has not ceased funding projects approved by the Kerala Infrastructure Investment Fund Board (KIIFB), an agency responsible for financing state infrastructure projects.

Balagopal emphasized that the anti-federal stance has plunged Kerala into financial distress. Nevertheless, the KIIFB has managed to invest Rs 29,100 crore in various projects. He acknowledged that the progress of KIIFB's activities had slowed down due to these challenges, but dismissed claims of a complete standstill. The Left government plans to execute infrastructure projects worth Rs 50,000 crore, having already sanctioned 1,110 projects valued at Rs 86,143.49 crore in areas such as tourism, transportation, education, and health.

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