Kerala CM leads 'Satyagraha' protest against Centre's 'financial discrimination'

Thiruvananthapuram, Jan 12 (PTI) Kerala Chief Minister Pinarayi Vijayan on Sunday accused the BJP-led Centre of subjecting the state to "financial discrimination" and alleged that arbitrary cuts in grants and borrowing limits were aimed at "economically strangulating" it.

The Centre is trying to "snatch away" the constitutionally guaranteed rights of Kerala, a move that has no place in a democratic country, he claimed.

The CM was speaking while leading a day-long Satyagraha protest here against the union government, accusing it of "political vengeance" and "bias" in denying the state its rightful financial allocations.

Addressing the gathering, he said the state was being forced into an “extraordinary struggle” to protect its constitutionally guaranteed rights.

Vijayan urged everyone to stand united to ensure that Kerala received its due share.

"Our state is in the midst of a struggle. This is a struggle for the survival of this land and its people. Believing that all authority rests in their hands, the rulers at the Centre are arbitrarily usurping our rights." "The present situation has compelled us to take to struggle in order to protect those rights. This is an extraordinary and grave circumstance," Vijayan explained.

The Left veteran accused the Centre of "deliberately creating obstacles" to stall the state's progress and alleged that it had recently slashed more than half of the funds due to the state for the final three months of the current financial year.

According to him, Kerala was entitled to receive Rs 12,000 crore during the January–March period, but Rs 5,900 crore of the amount was denied without justification.

The cuts have severely affected the state’s ability to meet expenditure commitments.

Vijayan further alleged that the Centre was attempting to undermine Kerala’s achievements in health, education and social welfare by tightening financial controls and withholding funds, including those for centrally sponsored schemes announced in the Prime Minister’s name.

He also condemned the "excessive centralisation of power" by the union government and its use of discretionary grants to reward states ruled by politically aligned governments, while imposing economic sanctions on states governed by opposition parties.

Citing past instances, the veteran referred to the denial of permission for foreign assistance to Kerala during the 2018 floods and the alleged refusal to provide adequate relief following the Wayanad landslide disaster.

Rejecting allegations of fiscal mismanagement, the CM said claims that Kerala’s financial crisis was due to extravagance were "false and politically motivated." Despite reduced central allocations, the state has continued spending on welfare schemes, infrastructure development, industrial growth and employment generation, he noted.

Alleging that centrally sponsored schemes were being used as political propaganda tools, he charged the union government of withholding assistance to the state under the pretext of branding and related issues.

"Not content with withholding grants and cutting borrowing limits, the Centre has further reduced the borrowing ceiling by Rs 3,323 crore by unilaterally imposing conditions related to the Guarantee Redemption Fund," Vijayan said.

Pointing to recent remarks by Union Home Minister Amit Shah that Kerala received a higher share of funds under the Modi government, Pinarayi Vijayan said tax devolution was a constitutional right of states and not a matter of generosity.

He alleged that the Centre had interfered with the functioning of the Finance Commission and cited the reported statements by NITI Aayog CEO B V R Subrahmanyam to claim that pressure was exerted to reduce states’ tax shares.

"Subrahmanyam, who is currently serving as the CEO of NITI Aayog, has stated that soon after becoming Prime Minister in 2014, Narendra Modi exerted pressure on the Finance Commission to reduce the tax share of states," Vijayan said.

Noting that the Finance Commissions are constitutional bodies empowered to take independent decisions on tax devolution to states, he said the PM's act was a violation of these constitutional norms.

"The Finance Commission headed by Y V Reddy had recommended that states be allocated 42 per cent of central tax revenue. The Prime Minister attempted to reduce this to 33 per cent," he added.

Vijayan also claimed that PM Modi has not refuted this claim to date.

"When Amit Shah cites figures, he must also clarify these facts. Perhaps realising that none of this can be defended, he has now resorted to dreaming about a distant future," the veteran said in an apparent dig at Shah's statements on BJP coming into power in Kerala in the upcoming Assembly elections.

Calling for statewide protests against the Centre's discrimination, he said Kerala would continue its struggle, including legal action, to safeguard federalism, democracy and secular values, and to ensure Kerala receives its rightful share of central funds.

The CM also criticised the Congress-led UDF, alleging that the opposition had failed to take a united stand against what it described as discrimination against the state.

The day-long satyagraha protest, held at the Martyrs' Memorial in Palayam in the heart of the city, saw the participation of cabinet ministers, ruling MLAs, senior leaders and other people's representatives. PTI LGK ROH