Kerala and Jharkhand Suffer Losses Worth Thousands of Crores, Welfare Schemes Affected
Ranchi:: The Communist Party of India (Marxist) has strongly criticized the Central Government, alleging that the BJP-led NDA government is openly discriminating against non-BJP ruled states. CPI(M) State Secretary Prakash Viplav said that the Centre’s policies are not only politically motivated but are also causing serious harm to state economies, welfare programmes, and the common people.
He stated that Kerala and Jharkhand are among the worst affected by this discriminatory approach, suffering massive financial losses amounting to thousands of crores of rupees.
Kerala Suffers a Loss of ₹57,000 Crore
Prakash Viplav said that due to the Centre’s policies, Kerala has suffered a revenue loss of nearly ₹57,000 crore over the last five years. He pointed out that changes made in the recommendations of the Finance Commissions have significantly reduced Kerala’s share in central taxes.
According to the data:
•Kerala’s share during the 10th Finance Commission: 3.875%
•Kerala’s share during the 15th Finance Commission: 1.925%
•Because of this sharp decline, Kerala alone incurred a loss of nearly ₹27,000 crore in the financial year 2024–25.
Despite this, the Left Democratic Front (LDF) government of Kerala has carried out historic initiatives using its own resources, including the successful elimination of extreme poverty, making it one of the first states in the country to achieve this milestone.
Jharkhand Also Being Deprived of Its Legitimate Dues
The CPI(M) leader said that Jharkhand is also facing similar injustice. The Central Government delayed the release of funds due to the state for two financial years under the recommendations of the 15th Finance Commission.
As a result:
• Scholarships for lakhs of students from Scheduled Castes, Scheduled Tribes, and
minority communities were disrupted
•Development works in more than 4,000 panchayats came to a standstill
Basic infrastructure projects such as roads, drinking water supply, drains, Anganwadi centres, and health sub-centres were halted
Employment generation schemes like MGNREGA slowed down considerably
After sustained pressure and prolonged negotiations by state ministers in Delhi, the Centre finally released only ₹275.13 crore as the first installment for the year 2024–25, which CPI(M) described as grossly inadequate.
Large Dues Pending Under Cess and Mineral Revenues
Prakash Viplav further alleged that Jharkhand, despite being one of the most mineral-rich states in the country, is not receiving its rightful share. Thousands of crores of rupees are still pending with the Central Government under cess and other revenue heads.
He said that Chief Minister Hemant Soren has repeatedly raised this issue, but no concrete action has been taken so far.
Severe Impact on Social Welfare Schemes
CPI(M) stated that the Centre’s financial cutbacks have had a direct and adverse impact on the poor, tribals, Dalits, women, and students in both Kerala and Jharkhand.
•The affected schemes include:
•Scholarship programmes
•Old-age and widow pensions
•Nutrition and maternity benefit schemes
•Rural housing programmes
•Healthcare and education initiatives
•Due to the delay and reduction in funds, several schemes have either been slowed down or scaled back.
An Attempt to Weaken Federalism
Prakash Viplav said that this is not merely a financial issue but a direct assault on India’s federal structure. By weakening the states financially, the Centre is attempting to centralise power and undermine constitutional rights.
He warned that CPI(M) would take this issue to the national level and intensify its struggle to protect the rights of Kerala, Jharkhand, and all non-BJP ruled states.
CPI(M)’s Key Demands
•The CPI(M) has demanded that the Central Government:
•Immediately release all pending dues of Kerala and Jharkhand
•Clear the outstanding cess and mineral-related payments Implement Finance Commission recommendations without discrimination
Respect the constitutional rights of the states
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