In the midst of discussions about the central government providing financial support to Kerala, State Finance Minister K N Balagopal addressed the issue on Friday. He clarified that the state government has received Rs 2,725 crore, encompassing tax share and the settlement of IGST, following the standard procedure of tax allocations disbursed in installments under the budget.
Balagopal debunked reports suggesting financial aid from the center in a Facebook post, emphasizing that these fund transfers are routine tax allocations rather than extraordinary assistance.
FB Post:
Responding to media narratives portraying central assistance amid the state’s financial crisis, he highlighted that Rs 2,736 crore represents the state’s share of the tax collection, a distribution common to all states.
He elaborated on the nature of IGST, asserting that it is collected by the central exchequer from inter-state movement of goods and services, and subsequently distributed among states. Balagopal clarified that the allowance of IGST share to the state does not constitute central assistance.
Regarding the state’s request to borrow approximately Rs 13,000 crore, he disclosed that the Centre conditioned approval on withdrawing the Supreme Court petition. He lamented the blockage of funds earmarked for increased expenditure in February and March, emphasizing the adverse impact on the state’s financial situation.
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