Financially strangulating state: Kerala Assembly passes resolution against Centre

The Kerala Assembly on Friday passed a unanimous resolution which accused the union government of destroying the federal structure of the country by financially strangulating the state. Speaker A N Shamseer announced that the resolution was passed unanimously even though the Opposition was not present in the Assembly.

Introducing the resolution, Finance Minister K N Balagopal said the Centre has reduced Kerala's borrowing limit and slashed the revenue deficit grant.

He also attacked the Congress-led UDF which boycotted the Assembly proceedings instead of staying back for the resolution.


"All these actions of the central government amounts to destroying the federal structure of the country. Like the Union government has full authority over the Union List, the Constitution provides the States absolute authority over the State List," Balagopal said.

He pointed out that the Centre had rejected the Finance Commission's recommendations and reduced Kerala's borrowing limit. The resolution said that the states fund the majority of the expenses including that of the funds for the social welfare projects, but a huge chunk of revenue goes to the Centre.