Kerala Govt slams Centre's 'unconstitutional' move in grants distribution

In an escalating conflict between the Left government in Kerala and the BJP-ruled Centre, the state administration on Wednesday labeled as ”unconstitutional” a new condition introduced by the union government for distribution of grants approved by the financial commission for local bodies.

”The central government, at the last moment and without the Finance Commission’s recommendation, imposed a condition through a special order. This move is an unconstitutional attempt to undermine the Panchayati Raj system in the country,” Kerala’s Minister for Local Self-Government M B Rajesh alleged here.

He claimed that the disputed clause involves holding back the initial grant installment for local bodies in states and said it is a point of contention.

Speaking to the media, Rajesh accused the central government of introducing a clause not recommended by the Finance Commission, asserting that its inclusion aims to ”destroy” the Panchayati Raj system in the states.

The clause, according to Rajesh, impacts the first installment, constituting half of the total grant allocated to the state from the 15th Finance Commission.

Under the 14th Finance Commission grant, Kerala had received Rs 7012.01 crore over five years (2015-16 to 2019-20), with expenditures totaling Rs 5484.84 crores (78.22 per cent).

Due to the newly introduced clause, which considers the unspent amount exceeding the prescribed threshold, Kerala stands to lose its entitlement to the first installment from the 15th Finance Commission, the minister lamented.

This is another point of conflict in the ongoing row between the state and the Centre over the union government’s alleged financial restrictions on Kerala.