Union Finance Minister Nirmala Sitharaman Responds to Kerala Government's Allegations, Highlights Fund Release Details
Introduction
Union Finance Minister Nirmala Sitharaman has addressed the allegations made by Kerala's Left government regarding fund allocations. She dismissed claims of negligence by asserting that the Central government promptly releases funds to the state without delay. The Finance Minister accused the Kerala government of not meeting necessary criteria, leading to delays in fund disbursement.
Finance Commission Grants
Sitharaman highlighted that the highest amount of Finance Commission Grants has been released to Kerala under Prime Minister Narendra Modi's leadership from 2009-10 to 2023-24. She emphasized that funds are disbursed in a timely manner and criticized the CPI(M)-led alliance for announcing a protest in January against the alleged neglect by the Central government.
National Social Assistance Programme (NSAP)
The Finance Minister informed that under the NSAP, all pending liabilities and the first tranche of 2023-24, covering senior citizen pensions, amounting to Rs 602.14 crore, were released to Kerala in October 2023.
7th UGC Pay Revision
Regarding the 7th UGC pay revision, Sitharaman stated that the funds could not be released to Kerala as the state government did not fulfill the requisite conditions. The Ministry of Education's scheme required compliance with guidelines, and the Kerala government's failure to meet these conditions led to the delay.
COVID-19 Assistance
Sitharaman pointed out that since the onset of COVID-19, the Central government has provided states with 50-year interest-free loans as Special Assistance for Capital Investment. She mentioned that Kerala had to follow branding guidelines for Centrally Sponsored Schemes, and failure to do so resulted in the delay of fund release.
Health Grants and National Food Security Act
On health grants, Sitharaman stressed that the Kerala government needs to fulfill stipulated conditions and recommendations of the Ministry of Health and Family Welfare and the 15th Finance Commission for funds to be released. She also mentioned the release of Rs 259.63 crore under the National Food Security Act for the years 2018-19 to 2022-23.
GST Compensation Cess
Addressing the GST Compensation Cess issue, Sitharaman questioned the Kerala government's request to delay release until revenue numbers are re-worked with their Accountant General. She emphasized the need for accurate figures before the Centre can release the compensation cess.
Conclusion
This response from Finance Minister Nirmala Sitharaman comes amidst escalating tensions between the Central government and Kerala's Left government. The Finance Minister asserts that funds are released promptly and criticizes the state government for alleged non-compliance with guidelines, contributing to delays in fund allocation. As the Left Democratic Front prepares for a protest in New Delhi, the conflict over fund allocation remains a focal point of contention between the Centre and the state of Kerala.
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