Centre denies Rs.2044 crore anti-recession fund to Kerala

Kochi: The Centre has rejected Kerala’s request for Rs.2044 crore on the ground that the State hadn’t complied with its condition mainly branding of projects executed with Central aid. Under its anti-recession package introduced during post-COVID -19 period, the Centre grants long-term loans to the States. The Centre’s decision is likely to throw several developmental projects in the State out of gear.

Kerala had sought Rs. 2044 crore towards the expenditure of several ongoing projects including the ones backed by KIIBF and Vizhinjam Port The Union Government, however, intimated to the State that it was entitled to a special aid of Rs.1925crore, but the fund was denied as the it had failed to go by Central norms in four projects being implemented with the Central fund.

The Centre has made branding mandatory for the Swachi Bharat Mission, Ayushman Bharat, National Health Mission, Health Mission, and Poshan Abhiyan Mission. However, Kerala reiterates that the projects implemented with the participation of the Central and State cannot be labeled as a Central project.

The Centre is yet to release Rs.5891 crore for various projects, in addition to capital expenditure funds.

Earlier, it was reported that Kerala had been denied GST compensation of Rs.57,400 crore, revenue deficit grant of Rs.8,400 crore, loan shelving of Rs.19,000, and tax devolution of Rs.18,000 crore.