At a time when the Opposition has intensified its protest against the LDF Government’s budget proposal to impose cess on petrol and diesel, Kerala Chief Minister Pinarayi Vijayan has on Thursday said  his government  was forced to levy Rs 2 on fuel due to the vindictive approach of the Central government to the state.

Speaking to media persons here, CM Vijayan said it was because of the revengeful approach of the Centre government towards Kerala that the LDF government was forced to impose cess on petrol and diesel. He alleged that the Centre is denying the state its rightful claims.

He said cess on petrol and diesel was imposed in order to help the poor. The state government was left with no other choice, he added.

“It is aimed at helping the poor have a better life,” the CM said.

He also said two-rupee cess on petrol, which was announced in the state budget, will not be withdrawn dismissing  the Opposition’s claims that the state was debt-ridden, Pinarayi Vijayan said Kerala’s outstanding debt has dropped by 2.2 per cent in the revised figures of 2022-23 from 38.51 per cent in 2020-21. He said that as per the 2022-23 budget estimate, the outstanding debt is is expected at 36.05 per cent.

“Kerala’s total debt was 38.51 percent of the state’s GDP during 2020-21. It has come down to 37.01 percent in 2021-22. According to the estimate for 2022-23, it will be 36.38 percent. According to budget estimates, the debt is expected to come down to 36.05 percent this fiscal year,” he said

Meanwhile, a damning Comptroller and Auditor General (CAG) report slamming the LDF Government for inefficient tax collection resulting in an estimated Rs 7,100 crore revenue shortfall in the  last five years, has given fodder for the opposition to attack the LDF government.

The report is a major setback to the Left Democratic Front Government, which last week proposed additional direct tax burden to the tune of Rs 3,000 crore, including social security cess of Rs 2 on a litre of fuel, citing the financial constraints of the state government. The LDF government has justified the fresh tax proposals and put the blame on the Union government, citing cessation of GST compensation and other restrictive measures.