Kerala's Fiscal Crisis: Reckless Policies or Central Neglect?

Finance Minister Nirmala Sitharaman addressed the Rajya Sabha, addressing Kerala's fiscal crisis, attributing it to the alleged reckless policies by the LDF and UDF governments, not Central fund cuts. She highlighted substantial financial support since 2014 and criticized past Congress actions, referencing the dismissal of Kerala's first Communist government.

Finance Minister Nirmala Sitharaman addressed the Rajya Sabha, asserting that Kerala's fiscal crisis results from the 'reckless policies' of the state's LDF and UDF governments, rather than Central neglect. She refuted allegations of the Centre reducing funds to Kerala and emphasized the financial backing provided since 2014.

Sitharaman referenced the dismissal of Kerala's first-ever elected Communist government by the Congress in 1959, challenging opposition members on the historical misuse of democracy. She noted the substantial funds allocated during PM Narendra Modi's tenure, stating they surpassed previous allocations exponentially.

The Minister cited audit reports indicating Kerala's poor debt management, with most debt receipts channeled to repay outstanding debt, underscoring the state's fiscal mismanagement. Sitharaman reassured that the Central support for Kerala was substantial, countering claims of discriminatory treatment.

(With inputs from agencies.)