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Reading: Kerala CM to lead protest against Centre’s financial discrimination | Central India’s Premier English Daily
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Government Policies

Kerala CM to lead protest against Centre’s financial discrimination | Central India’s Premier English Daily

Last updated: January 12, 2026 11:25 am
Published: 4 months ago
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Thiruvananthapuram, Jan 12 (UNI) The ruling Left Democratic Front (LDF) in Kerala will organise a day-long Satyagraha in the state capital on Monday, led by Chief Minister Pinarayi Vijayan, protesting what it describes as the union Government’s financial stranglehold and discriminatory treatment towards Kerala.

The protest will be held from 10 am to 5 pm at the Martyrs’ Memorial (Raktasakshi Mandapam) at Palayam, with the participation of ministers, legislators, Members of Parliament, LDF leaders and other elected representatives.

The LDF has alleged that the Centre’s fiscal policies have severely constrained Kerala’s finances and disrupted the implementation of welfare and development programmes.

According to the state government, the union Government has drastically reduced Kerala’s permissible borrowing limits, cutting nearly ₹17,000 crore during the current financial year, including a ₹5,900 crore reduction in the final three months.

The government maintains that these curbs have created an artificial financial crisis and crippled routine governance.

The state has further accused the Centre of denying permission to raise loans amounting to Rs 3,300 crore, citing technical issues related to guarantee deposits.

It has also alleged that the Centre has withheld ₹965 crore in Integrated GST (IGST) settlement dues, despite repeated requests for their release.

In addition, a loan proposal of around ₹6,000 crore, required to meet expenses for land acquisition for national highway projects, is still pending with the union Government, the LDF said.

Kerala has also pointed out that the Centre has failed to release Rs 5,784 crore due under various centrally sponsored schemes, including paddy procurement, Jal Jeevan Mission, Samagra Shiksha Kerala and UGC-related grants.

The continued delay in disbursal of these funds, the government said, has adversely affected development works and service delivery.

LDF leaders have argued that Kerala is being subjected to fiscal discrimination, noting that the state receives a comparatively lower share of central assistance than several other states, despite improving its own revenue collection and maintaining its debt-to-GSDP ratio below the national average.

The government contends that its financial management has been responsible and transparent, and that the Centre’s actions are politically motivated.

According to the LDF, the financial constraints imposed by the Centre have begun to impact welfare pensions, scholarships, women-oriented schemes and other social security programmes, causing hardship to the people.

The protest is aimed at drawing national attention to what the government describes as a violation of federal principles and the financial rights of states.

The Satyagraha in Thiruvananthapuram is part of a series of agitations launched by the LDF, following earlier protests, including demonstrations held in New Delhi.

LDF leaders said the movement is directed against the union Government’s policies and not against any state or its people, and appealed to the public and democratic forces to extend support to the protest.

Read more on Central Chronicle

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