Harmful Central financial policies will deprive the State of about ₹23,000 crore in the current fiscal compared to 2020-21, a situation which could seriously hobble the State's ability to fund welfare and development schemes, Finance Minister K. N. Balagopal informed the Assembly on Thursday.
Presenting a statement in the House which sought to raise ''certain crucial issues for protecting Constitutional values and federal structure,'' Mr. Balagopal blamed the Narendra Modi government of using Central agencies such as the Comptroller and Auditor General (CAG), Enforcement Directorate (ED), and Income Tax department to further its own interests and curtail the fiscal powers of the State.
Mr. Balagopal’s statement came on the heels of the latest Comptroller and Auditor General (CAG) report on the State finances criticising the government for its ‘off-budget borrowings’ through the Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pension Ltd. (KSSPL), and the ED issuing a summons to former Finance Minister T.M. Thomas Isaac regarding KIIFB’s open market borrowings.
