Centre settled only tax share due, not financial assistance to Kerala: Minister Balagopal

Kerala Finance Minister K N Balagopal. Photo: Manorama

Thiruvananthapuram: Amid the reports on central government sanctioning financial assistance to Kerala, the state finance minister K N Balagopal on Friday clarified that the state government recieved Rs 2,725 crore as tax share and settlement of IGST.

"These are tax allocations that are normally made available to the state in installments under the budget," Balagopal said in a Facebook post rubbishing the reports on financial aid from centre. 

He said such fund transfers being reported as financial assistance is "misleading". He was responding to certain media reports suggesting that the central government has provided "financial aid" to the state which has been reeling under severe financial crisis due to alleged policies of the union government. Balagopal said Rs 2,736 crore was given as the share of the tax amount collected from the state by the central government. 

"Not just Kerala but all other states have got a proportionate share," he said. He said the IGST levied on inter-state movement of goods and services goes to the central exchequer. "This is distributed among the states. Allowance of IGST share due to the state is also not central assistance," Balagopal clarified.

 The Centre had said that it would give permission to Kerala to borrow around Rs 13,000 crore, if the petition against it was withdrawn from the Supreme Court, he said.

"The Centre has blocked the fund which could have been used for the increased expenditure in the months of February and March," Balagopal added.

(With PTI inputs)

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