Kerala Hosts Opposition Conclave to Address Fiscal Federalism

Kerala hosts a conclave of five opposition-ruled states to discuss fiscal federalism and present issues to the 16th Finance Commission. The event, featuring state officials and economic experts, aims to strengthen opposition states' financial bargaining position against the BJP-ruled Centre.

Kerala will host a significant conclave featuring representatives from five opposition-ruled states, including four from South India and Punjab, to deliberate on their fiscal needs ahead of the 16th Finance Commission, State Finance Minister K N Balagopal announced on Thursday.

In addition to the Left-ruled Kerala and AAP-governed Punjab, the participating states are Tamil Nadu (DMK) and Congress-led Karnataka and Telangana. The initiative, perceived as a strategic move by the Left government, aims to strengthen these states' bargaining power with the BJP-ruled Centre.

Balagopal revealed that the conclave, set to be inaugurated by Kerala Chief Minister Pinarayi Vijayan on September 12, is designed to 'protect and strengthen' the cooperative and fiscal federalism of the country. Key participants include Telangana Deputy Chief Minister and Finance Minister Bhatti Vikramarka Mallu, Karnataka Revenue Minister Krishna Byre Gowda, Punjab Finance Minister Harpal Singh Cheema, Tamil Nadu Finance Minister Thangam Thennarasu, and Leader of the Opposition in the Kerala Assembly V D Satheesan. The gathering will also attract finance secretaries and economic experts like former Central Government Economic Advisor Arvind Subramanian.

The conference intends to bring critical developmental and financial concerns before the 16th Finance Commission. Balagopal criticized the Union government for employing 'unfair methods of distribution of funds' and highlighted a substantial increase in the share of cess and surcharge collected by the Centre from 9.4% in 2011-12 to 22.8% in 2022-23. He argued that the states only receive 29.6% of the Centre's revenue, far below the 41% recommendation by the 15th Finance Commission. The conclave aims to address these and other financial discriminations to ensure states get their due tax shares and timely grants to local bodies.

(With inputs from agencies.)