Kerala Chief Minister Seeks Adequate GST Compensation Amid Rate Revision

Thiruvananthapuram: Kerala Chief Minister Pinarayi Vijayan on Tuesday addressed the media, outlining key issues ranging from GST rate revision to state development projects, welfare measures, and administrative reforms.

The Chief Minister expressed strong concern over the potential revenue loss to states following the proposed revision of the GST rate structure. “While reducing tax rates on essential commodities can ease the burden on citizens, the resulting shortfall will seriously affect welfare programmes for the poor and weaker sections,” he said. Vijayan urged the Centre to ensure adequate compensation for states, adding that the benefits of revised GST rates must reach consumers. He also highlighted that with limited revenue-raising powers and borrowing restrictions, states would face severe strain if sudden revenue losses occur.

Announcing a major infrastructure project, the Chief Minister said work on the Anakkampoil–Kalladi–Meppadi tunnel road will begin on August 31. Built under the KIIFB scheme at a cost of 2,134.5 crore rupees, the 8.73 km stretch includes an 8.1 km twin tunnel to be executed by Konkan Railway Corporation Ltd. The project will reduce the Anakkampoil–Meppadi distance to 22 km, end the hardship of ghat road travel, and improve connectivity to Karnataka and Tamil Nadu. Nearly 90% of private land acquisition has also been completed. Work on the main approach road to the tunnel has already begun.

On the law and order front, Vijayan highlighted the government’s continued crackdown on drug use and trade. Between February 22 and August 25, Operation D-Hunt led to 23,652 cases, 24,986 arrests, and the seizure of large quantities of cannabis and synthetic drugs. In just one week between August 17 and 23, the Excise Department registered 311 cases and arrested 290 persons.

The Chief Minister also reassured the public about the government’s Onam preparations. “Despite economic challenges caused by central policies, the state has made arrangements to distribute all welfare benefits on time,” he said. A total of 19,575 crore rupees has been earmarked for salaries, pensions, bonuses, welfare pensions, and festival allowances. Supplyco fairs and mobile Onam markets have been launched across the state, offering essential goods at subsidized rates. Kudumbashree, cooperative societies, and Consumerfed are also actively participating in the festive distribution network.

On administrative reforms, Vijayan reported significant progress in the File Adalat launched on July 1. “So far, 53.87% of pending files have been cleared across the Secretariat, directorates, and public institutions,” he said. The target is to dispose of at least 60% of files by August 31, with continuous review under the Chief Secretary.

Summing up, the Chief Minister said the government is committed to balancing welfare responsibilities with long-term development. “Kerala is facing challenges, but we will overcome them by strengthening revenue efforts, completing key infrastructure projects, protecting the public from social evils like drugs, and ensuring that welfare reaches everyone, especially during Onam,” Vijayan said.