The 2024-25 Interim Budget, to be presented by Union Finance Minister Nirmala Sitharaman on Thursday, will be keenly watched by Kerala which is locked in a running battle with the Centre over cuts in tax share and borrowing limit and the idea of cooperative federalism.
Several of the demands on the State’s wish-list presented ahead of Ms. Sitharaman’s 2023-24 Budget remain unattended. They include increasing the shareable portion of the Goods and Services Tax (GST) from the current 50:50 ratio to 60:40 in favour of the States, and a a more flexible approach to centrally sponsored schemes with enhanced central share.
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Kerala’s demand for an AIIMS-equivalent medical institute is also pending approval.
Further, the State had sought a rehabilitation package for “return migrants.” These demands remain unmet alongside the state’s grievance related to ‘off-budget’ borrowings by the Kerala Infrastructure Investment Fund Board (KIIFB) and the Kerala Social Security Pension Ltd (KSSPL) being treated as direct state debt.
The LDF is scheduled to stage a protest at the Jantar Mantar in New Delhi on February 8 against the alleged neglect of the State.
On the eve of the interim Budget, Kerala Finance Minister K.N. Balagopal reiterated in a Facebook post that the State was facing “total neglect” on the financial front. Central transfers have dwindled to a mere 29% of the total revenue receipts of the State. Which means, the State was meeting 71% of its revenue requirement on its own, he noted.
Speaking to The Hindu earlier this week, Mr. Balagopal wanted the Centre to announce a stimulus package to enliven the national economy.
The State’s wish-list, among other things, include requirements related to airports. The Kannur International Airport has been unable to launch international flights as it lacks ‘point of call’ status. The proposal for Sabarimala airport is also yet to receive security clearance.
