Chief Minister Pinarayi Vijayan on Friday accused the Centre of trespassing into the rightful domains of the States and attempting to prevent them from carrying out their responsibilities.
Mr. Vijayan was speaking after releasing India’s Federal Setup: A Journey through Seven Decades, a book written by R. Mohan, Honorary fellow, Gulati Institute of Finance and Taxation (GIFT). The federal structure of the country is facing serious challenges today. There are instances where laws passed by the State legislatures cannot be put into operation as the final assent is withheld. Deliberate attempts are being made by the Centre to block them, he alleged.
Finance Minister K.N. Balagopal, who presided, said federalism in India was seeing an unhealthy shift from cooperative federalism to a centralised system. Central policies have shrunk the fiscal space of the State. Almost 65% of tax revenues go to the Centre, while the States meet 64% of their expenditures on their own. Mr. Balagopal said the disparity in incomes of the States was widening. The fiscal space of Kerala has further shrunk with the Centre imposing curbs on the open market borrowing limit, he added.
