Reacting to Union Finance Minister Nirmala Sitharaman’s statement that there was no default on the part of the Central government in allocating funds to Kerala, Chief Minister Pinarayi Vijayan on Sunday said she is misrepresenting the facts and that the Centre had withheld the welfare pension for three and a half years.

Speaking to media persons in Kozhikode, Chief Minister Vijayan said the Union Finance Minister claimed that Rs 34714 crore grants had been allocated to Kerala. This is not generosity and is the share that Kerala has to get, he added.

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Stating that the Centre is financially strangulating the state, he said: “We are borrowing money due to the non-availability of Central allocation.”

It appears that the Chief Minister didn’t reply to all the points related to the Centre allocation of funds to the state, which were specifically stated in Nirmala Sitharaman’s speech in Thiruvananthapuram on Saturday.

The Union Finance Minister tried to counter the state government’s allegation that the Centre is neglecting Kerala by presenting figures.

Union Finance Minister Sitharaman on Saturday came out against the Kerala Government, saying that the Kerala government is propagating false claims that the Union government hasn’t allocated funds to the state.

Presenting figures on the Central fund transfers, Nirmala Sitharaman emphasized that the Centre has fulfilled all eligible instances of fund transfers to Kerala.

Sitharaman said that those who have followed the Finance Commission’s instructions have been properly given grants and if Kerala has not received it, it is because they have not followed the instructions.

The Minister clarified that all funds for social security pensions were transferred to Kerala last month. However, the state hasn’t applied for the second instalment.

“Old-age pensions fall under the National Social Assistance Programme umbrella scheme. The first tranche for 2023-24, Rs 602.14 crore, was released to the state in October 2023.”

“The state government has not submitted the request for the second tranche. So where is it pending,” the minister asked.

“On the issue regarding 7th UGC pay revision, the Ministry of Education has informed that the Scheme of 50 per cent Central share (7th CPC), through reimbursement was given to those state governments who adopted and implemented the revised pay scales as per the 7th CPC, subject to fulfilment of all the conditions laid down in the scheme and submission of the complete proposal as per the guidelines on or before 31st March, 2022,” Nirmala Seetharaman said.

“The Kerala government didn’t fulfil the requisite conditions, hence the funds couldn’t be released,” she added.

Regarding the GST compensation, Nirmala Sitharaman stated that Kerala needs to provide accurate reports through the Accountant General (AG) to claim compensation. She alleged that Kerala is changing the name of the Central projects after getting central allocations.