Union Budget displays discriminatory attitude towards states: Kerala CM Pinarayi Vijayan

Thiruvananthapuram (Kerala) [India], July 24 (ANI): Chief Minister Pinarayi Vijayan on Tuesday accused the Centre of neglecting Kerala and said that the budget presented in Parliament by Union Finance Minister Nirmala Sitharaman displayed a discriminatory attitude towards the states.

Vijayan added that while putting forth the preface of 8 goals of national importance, the finance minister has failed to honour the concerns of most states, including Kerala.

He stated that though it is not intended here to oppose any packages announced for any state in the budget, it is pertinent to mention that the complete neglect of any state is also unacceptable.

“Such an attitude by the centre is detrimental to the progress of states like Kerala. Refusal to consider the longstanding demands raised by Kerala echoes total disrespect to the people of the state,” said the Kerala CM.

Hence, a concerted effort will be made to reiterate Kerala’s demands before the centre, once the budget proposals are studied in detail, he added.

The Kerala CM also said that it is deplorable to note that only those proclamations, that sound indispensable for the political survival of the central government have found their place in the budget.

“So far as Kerala is concerned, the long-term demand for AIIMS has not been mentioned. The state’s concerns about disaster relief and prospects in the tourism sector have been discarded. Such neglect is disheartening and objectionable,” he added.

Vijayan said that due to the centre’s indifference on matters including borrowing limit restrictions, the states are struggling to ensure allocations for development activities in crucial sectors.

“Some of the budget pronouncements related to agriculture infringe on the prerogatives of the states. What was imperative here was to ensure the fiscal empowerment of the states. How can agricultural development be achieved without that empowerment?” he added.

The Kerala CM said that the centre is encroaching on the state’s tax powers while announcing projects in sectors such as urban development.

“It is a matter of fact that the states have to bear partial costs when centrally funded schemes are announced in the budget. It is seen in the budget that the centre is encroaching on the state’s tax powers while announcing projects in sectors such as urban development. The dictum to states to reduce stamp duty is given in the budget speech this time! After the introduction of GST, the states have very limited exclusive tax resources. Now, the centre is biding further invasion into the states’ tax resources by imposing conditions through centrally sponsored projects. This is in contrast to the federal principles enshrined in our Constitution,” he said.

“Significant cuts in important central projects have been announced in the budget. In the Pradhan Mantri Garib Kalyan Anna Yojana, Rs 272,802 crore was allocated in 2022-23, but this time, it came only to Rs 2,05,220 crore. In 2002-23, Rs 12,681 crore was allocated under the Pradhan Mantri Poshan Abhiyan. It has now been reduced to Rs 12,467 crore. In 2022-23, Rs 90,806 crore was allocated for the Mahatma Gandhi Employment Guarantee Scheme, but only Rs 86,000 crore has been allocated this time. These figures indicate an apathetic approach to projects affecting the common people,” he added.

Vijayan further added that the budget ignored the needs of the majority of the states by announcing projects that help ensure the political survival of the central government.

“By announcing only those projects that help ensure the political survival of the central government, the budget ignores the needs of the majority of the states. Such an approach is strongly condemned. Therefore, it is appealing to all that a consensus, regardless of party politics, to stand up against this neglect should be evolved, within Kerala,” the Kerala CM said.

Nirmala Sitharaman presented her record seventh consecutive Union Budget 2024-25 on Tuesday during the Budget Session of Parliament. She makes history as the first finance minister to present seven consecutive budget speeches, surpassing former Prime Minister Morarji Desai’s record of six consecutive budgets as finance minister between 1959 and 1964.

FM Sitharaman, in her seventh consecutive Union Budget for 2024-25, outlined key priorities aimed at fostering economic growth and creating ample opportunities. The priorities include productivity and resilience in agriculture, employment, and skilling and services.