“Kerala Finance Minister: No Special Aid from Centre”

Introduction:

Amidst swirling reports regarding financial assistance from the central government to Kerala, State Finance Minister K N Balagopal took to social media on Friday to address the matter.

Clarification of Financial Assistance Reports:

Balagopal clarified that the reported financial aid was, in fact, a regular allocation of Rs 2,725 crore as tax share and settlement of Integrated Goods and Services Tax (IGST).

Misleading Reports:

In a Facebook post, Balagopal refuted claims of receiving additional financial assistance from the central government, stating that such fund transfers were part of the routine budgetary allocations to the state.

Response to Media Reports:

The Finance Minister responded to media reports suggesting that Kerala had received special financial assistance from the central government due to the state’s alleged financial crisis resulting from the policies of the Union government.

Explanation of Allocations:

Balagopal clarified that the Rs 2,736 crore allocated was the state’s share of the tax amount collected by the central government, which all states receive in proportion.

Distribution of IGST Share:

Furthermore, he explained that the IGST levied on inter-state movement of goods and services goes to the central exchequer and is subsequently distributed among the states.

Dispute Over Borrowing Permissions:

Balagopal also highlighted the ongoing dispute between the Centre and Kerala regarding borrowing permissions.

Conclusion:

In summary, the Finance Minister’s statement aimed to dispel misconceptions surrounding Kerala’s financial situation and the nature of assistance received from the central government.