Union Minister of State for External Affairs V Muraleedharan reiterated that the Kerala government’s claim that the Centre was responsible for the state’s financial crisis is a blatant ‘lie’.

Speaking to media persons here on Tuesday, Muraleedharan said the state Finance Minister K N Balagopal is not giving proper answer to the query as to how much amount is due from the Centre to Kerala.

He said the Centre had allotted Rs 378 crore for paddy procurement in last March and he asked the state finance minister whether this amount was given to the farmers.

Earlier on Monday, Union minister had stated that the state was wrongly blaming the Centre for the mess created due to the wastefulness and financial mismanagement of the Pinarayi Vijayan Government. The Centre has transferred funds in all eligible instances to the state. Funds may have been withheld in instances where the state has either failed to apply within the deadline or adhere to norms.

Stating that all the state governments know how much revenue deficit grant they are going to get every year in advance, Muraleedharan had said the CPI-M Government is deliberately misleading the public with the claim that the Centre has slashed the grant. He said that Chief Minister Pinarayi Vijayan was “a fool or playing a fool to mislead the public.”

He also said that Kerala was one of the states that have received the highest revenue deficit grant in the country. “The Union government is responsible for the repayment of the borrowing done in the name of ‘off-budget borrowing’. The limit of 3 per cent GSDP has been set if each state is allowed to borrow as it likes, the financial stability of the country will be compromised,” said Muraleedharan.

The amount fixed by the Fifteenth Finance Commission in the fiscal deficit grant is transferred to Kerala in fixed instalments. The Revenue deficit grant is given to 17 states of the country as per Finance Commission norms. In the first year, the state governments will know how much they will get each year. To say “less now” is a deliberate misrepresentation. Kerala is one of the states that have received the highest revenue deficit grant in the country.

He said the lapses on the part of the state government had led to the state losing Rs.750 crore in pay revision arrears under the 7th Pay Revision Commission. The state did not keep the March 31, 2022 deadline for submitting its recommendation for receiving the money. Although the Centre had issued two reminders, the state had not responded.

Responding to Muraleedharan’s statement, Kerala Finance Minister K N Balagopal reminded the Union government that the Centre-state structure in the country was not a master-slave relationship, and said flimsy reasons are being cited to deny Kerala its rightful share of funds by the Union government.

Criticising V Muraleedharan’s statement that Chief Minister Pinarayi Vijayan was “a fool or playing a fool to mislead the public”, Balagopal said, “It’s the Union government which is trying to fool the people of Kerala. If anyone is supporting those trying to deny Kerala its share of funds, then they are the ones who are stupid.”

Balagopal on Monday said there were dues for the ration distribution, and paddy procurement. “That amount comes to Rs 1,000-odd crore, of which Rs 200 crore was released recently. Except for these two funds, all the remaining money distributed by the state has not been released by the Centre so far,” he explained.

On the allegations that Kerala had not sent proper documents to the Centre at the proper time, he said the Union minister was misleading the public. “We have sent a detailed letter to the Union finance minister pointing out all these things. One part relates to the money that we spent, and the other relates to the dues from the Centre,” he said.