Kerala Govt Protests Against Centre: What’s The Tussle Over Fund Distribution To States? What The Law Says
The Kerala government, led by the CPI(M), is staging a protest at Jantar Mantar in New Delhi. This comes after the Karnataka government held a similar protest over the distribution of central funds. Kerala alleges that the fiscal policies of the BJP-led government at the Centre are financially stifling the state. Chief Minister Pinarayi Vijayan, his cabinet colleagues, LDF MPs and legislators are likely to participate in the protest. Here is a look at the issues. Kerala claims that COVID-19 has made a curtailment of Rs 57,400 crore in the State Receipts in the current fiscal, and it is not getting its due share from the tax collected by the Centre. According to an RBI report on state finances, the Centre is to provide Rs 35 for every Rs 65 collected by the states on average. ...
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