ANI Photo | Centre-State relationship is not that of slave-owner: Kerala Finance Minister

Highlighting the insufficient funds allocated by the central government to the state, Kerala Finance Minister KN Balagopal criticised Union Minister V Muraleedharan and said that the relationship between the Centre and the states shouldn’t resemble that of slave-owner relationship.
“The Centre is giving a very small amount. Is this a slave-owner relationship? More than 5000 crores have to be given. They are not paying it for various reasons,” the state Finance Minister said.
Balagopal said that while Kerala was given 3.9 per cent earlier, it was reduced to 2.5, and later it was reduced to 1.9.
“Kerala was given 3.9 per cent, it was reduced to 2.5, and later it was reduced to 1.9. Now, when the income has decreased proportionally to the population, the central assistance has been reduced to 1.9, and the budget is 18000 crores. The Finance Commission became something that no one could touch,” he said.
The Kerala Finance Minister said that most of the GST collection goes to the Centre.
“When the GST was implemented, a different opinion was expressed. Most of the GST collection goes to the Centre. The state should get the money it deserves. The Center pays only 30 rupees of the total income of 100 rupees to Kerala. Earlier it was 46 rupees. Other states are getting paid more than 50 rupees.
Moreover, he raised concerns about the substantial portion of GST collections directed to the Centre, stating that Kerala receives only a fraction of what it contributes.
Balagopal said that there is an arrear of Rs 6,000 crore that the Centre owes to the Kerala government, out of which only Rs 800 crore has been paid.
“Not only are there policy issues, but there are arrears of Rs 6,000 crore out of which only Rs 800 crore has been given. The opinion of the state has been clearly stated and the Union Minister should not speak without taking responsibility for six thousand crores of rupees…The reason for Kerala’s financial crisis is the lack of central allocation,” the state Finance Minister said.
GST to be levied by the Centre is called Central GST (CGST) and that to be levied by the States is called State GST (SGST). CGST, SGST and IGST are levied at rates to be mutually agreed upon by the Centre and the States. The rates are notified on the recommendation of the GST Council.
The Finance Minister said that a large amount of money is not given by the Centre citing conditions.
“Kerala spends 11000 crores in a year and the Centre gives a small amount. A large amount of money is not given by the Center citing conditions.
On payments due to the Kerala under the University Grants Commission(UGC) head, Balagopal said, “All the documents mentioned by the Center regarding UGC have been handed over. The first letter in this regard was given on March 12, 2012.” (ANI)

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