Kerala lawmakers clashed fiercely in the state assembly on Monday over the growing financial crisis gripping the region. Finance Minister K.N. Balagopal faced sharp criticism from the Congress-led opposition during a heated debate triggered by an adjournment motion.
Balagopal kicked off his response by rejecting claims that he’s handling Kerala’s state finances like personal property. He pointed to a strong increase in non-tax revenue as the key to keeping things afloat without closing the treasury doors. “We’re handling money allocations wisely,” he said. “This government hasn’t diverted even one rupee. We won’t ease up on tax collection or give in to evaders.”
But opposition leader V.D. Satheesan, a top Congress figure, described the situation as the worst financial crisis in Kerala’s history. He claimed government checks are bouncing and organizations like Supplyco and the Kerala Medical Services Corporation are struggling badly. “Arrears for employees and pensioners have piled up to Rs 1 lakh crore,” Satheesan added, hinting at more revelations from GST Intelligence probes.
Balagopal fired back, emphasizing the government’s focus on uniting people with honest efforts. He highlighted successes like the massive Vizhinjam port project and assured everyone that payments to contractors and local bodies are flowing. “We’ll release funds before the local elections,” he promised. Despite the challenges, he noted, Kerala celebrated a vibrant Onam festival without any major disruptions.
The assembly also united to pass a resolution against rushing the Special Investigation and Audit Report (SIAR), calling it more than just a routine check. Congress lawmaker Mathew Kuzhalnadan, who moved the motion, accused the government of cutting projects, taking economic shortcuts, and failing at tax collection.
The debate exposed stark divides on Kerala’s liquidity crisis and economy. The opposition insists it’s a dire emergency, while the government maintains it’s steering through the storm without stopping vital services.
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