Kerala's Fiscal Struggle: CM Vijayan Decries Union's Financial Blockade

Kerala Chief Minister Pinarayi Vijayan accused the Union government of a 'financial blockade', citing reduced borrowing limits and central transfers impacting the state's finances and development. Vijayan highlighted the challenges, including decreased GST revenue, cuts in IGST settlement, and diminished export sectors, urging the Centre to restore funds.

Kerala Chief Minister Pinarayi Vijayan has launched a strong critique against the Union government, accusing it of executing a 'financial blockade' that reportedly cripples the state's economic health. Facing a sharp reduction in borrowing limits and central transfers, Vijayan claims that Kerala's development projects hang in the balance.

At a press conference, Vijayan underscored how these financial constraints undermine the federal spirit and have exacerbated fiscal stress in Kerala, despite the state's strong revenue efforts. He compared the Centre's reduction in Kerala's market borrowing limits and central financial transfers to a constitutional oversight.

Vijayan stressed the immediate need for the restoration of Kerala's rightful claims from the Centre. The state reportedly faces a resource loss of Rs 1,07,513 crore due to these policies, affecting health, education, and infrastructure sectors. The chief minister called for collective resistance against what he views as a 'deliberate' economic approach against Kerala.

(With inputs from agencies.)