Kerala's Fiscal Face-Off: Government vs. Opposition Over Financial Crisis Allegations

The Kerala Assembly on Monday was the arena for a fiery debate between the ruling Left Democratic Front (LDF) and the Congress-led United Democratic Front (UDF), centered around the fiscal condition of Kerala. Finance Minister K N Balagopal vehemently refuted opposition accusations of financial mismanagement, asserting that welfare programs remain intact despite monetary constraints.

Balagopal detailed the financial trajectory of the state, citing an increase in tax revenue and a reduction in fiscal deficits. He maintained that efficient fiscal management has allowed Kerala to progress with its developmental agenda amid challenges, despite the Centre's reduced allocations to the state.

Opposition Leader V D Satheesan painted a different picture, alleging an 'unprecedented financial crisis' stemming from ineffective tax collection and stringent treasury restrictions. He criticized the state government's strategies, including a perceived 2.52% dip in GST growth in 2024-25, amid broader economic challenges like international tariff changes and visa fee hikes.

(With inputs from agencies.)