Kerala's Financial Strain: A Battle for State Rights

Kerala Finance Minister K N Balagopal highlights the financial challenges faced by states due to central fiscal policies. He claims reduced central allocations and financial strains despite increased state expenditure. Balagopal criticizes the partial funding and branding mandates imposed by the Centre.

Kerala Finance Minister K N Balagopal has raised concerns over the central government's fiscal policies, emphasizing the challenges faced by states due to reduced financial allocations. He stated that even economically strong states are experiencing financial constraints.

Balagopal pointed out a significant 20% decline in central allocations to Kerala, yet the state's expenditure has risen. He argued that the state's financial issues could have been mitigated if it were allowed to use its resources freely.

The Kerala Appropriation Bill 2025 underscored these issues, and despite opposition allegations of mismanagement, Balagopal highlighted the government's sound fiscal practices that have led to increased revenue and expenditure.

(With inputs from agencies.)