Expect 16th Finance Commission Recommendations to Be Favourable to Kerala, Says Minister K N Balagopal

Thiruvananthapauram: Finance Minister K N Balagopal said that he expects the 16th Finance Commission report to include recommendations favourable to Kerala. During its visit to Kerala, the commission led by Arvind Panagariya expressed satisfaction with the state’s development initiatives. The commission was particularly pleased with the rapid completion of the Vizhinjam project.

The recommendations of the 15th Finance Commission had dealt a severe blow to Kerala, reducing the state’s share of tax revenue from the Centre by nearly half. The minister said he hopes the 16th Finance Commission will take a fair and just approach toward Kerala. He was speaking to journalists ahead of the budget presentation.

Once the Finance Commission report is tabled in Parliament during the Budget Session, it will be available to everyone. K N Balagopal noted that the Centre’s approach also affects BJP-ruled states, though they are unable to voice their complaints. Despite financial constraints imposed by the central government, Kerala has managed to progress over the past five years. There had been widespread claims that the treasury would shut down when this government came to power, but those challenges were overcome.

Although there was a disruption of about five months at one point in the distribution of welfare pensions, the increased pension amounts are now being disbursed on time. Over the last five years, the present government has distributed 55,000 crore rupees as welfare pensions, compared to 35,000 crore rupees by the previous LDF government and 11,000 crore rupees during the Oommen Chandy government.

The economic policies and military actions of the United States will worsen global conditions, the minister said. The US is carrying out unprecedented aggressive actions, creating political uncertainty and economic instability that will affect everyone. According to K N Balagopal, the current situation can only be addressed by increasing domestic production and strengthening the internal market.