Vijayan attributed these restrictions to a pattern of economic blockade initiated since 2017, including the inclusion of Public Account amounts in calculations that reduce the state's permissible borrowing limits.  
Governance

Kerala CM Announces Mass Satyagraha in Thiruvananthapuram on January 12 Against Centre's Alleged Financial Blockade

The Centre has slashed ₹5,900 crore from Kerala's eligible borrowing limit for the final quarter (January-March) of the current financial year. This is part of a broader reduction totaling ₹17,000 crore in the state's borrowing limits for the year.

Geetha Sunil Pillai

Thiruvananthapuram – In a strong show of defiance against what it describes as the central government's financial strangulation, the Kerala government, led by Chief Minister Pinarayi Vijayan, will stage a one-day Satyagraha protest on January 12 at the Martyrs' Column in Thiruvananthapuram. The event, organized by the ruling Left Democratic Front (LDF), is expected to draw mass participation from ministers, MLAs, MPs, and the public to highlight the state's grievances over reduced borrowing limits, withheld funds, and pending compensations.

Chief Minister Pinarayi Vijayan announced the protest in a detailed social media post on X (formerly Twitter) earlier today, outlining the specific financial measures imposed by the Centre that he claims are impeding Kerala's development. "Kerala opens a new front of resistance on Jan 12th at Thiruvananthapuram against the ongoing financial strangulation by the centre," Vijayan wrote. "A one-day Satyagraha with mass participation will be held, marking the state’s protest against the sanctions."

The Chief Minister provided a stark breakdown of the financial challenges facing the state:

  • Borrowing Limit Cuts: The Centre has slashed ₹5,900 crore from Kerala's eligible borrowing limit for the final quarter (January–March) of the current financial year. This is part of a broader reduction totaling ₹17,000 crore in the state's borrowing limits for the year.

  • Pending Highway Compensation: A request for an additional ₹6,000 crore loan to compensate for the state's expenditure on National Highway land acquisition remains unresolved.

  • Withheld IGST Recovery: ₹965 crore in Integrated Goods and Services Tax (IGST) recovery is currently being withheld by the central government.

  • Denied Borrowing Permissions: Borrowing permission worth ₹3,300 crore has been denied, citing guarantee deposits.

  • Arrears in Centrally Sponsored Schemes: The total outstanding arrears for centrally sponsored schemes amount to ₹5,784 crore.

Vijayan attributed these restrictions to a pattern of economic blockade initiated since 2017, including the inclusion of Public Account amounts in calculations that reduce the state's permissible borrowing limits. "The Central Government is continuously attempting to financially strangle Kerala," he stated in the post. "The concerted efforts to stall Kerala’s progress will be duly resisted by our people. We shall fight, we shall win."

The Satyagraha comes amid escalating tensions between the Kerala government and the Union government over fiscal federalism. LDF leaders, including CPI(M) state secretary M V Govindan, have described the Centre's policies as "anti-people," emphasizing the need for public mobilization to counter them. The protest is the first in a series of planned actions, with zonal marches scheduled from February 1 across northern, central, and southern Kerala to showcase the state government's developmental initiatives. Authorities in Thiruvananthapuram have made arrangements for the peaceful demonstration, urging widespread public support to amplify the message of fiscal autonomy for states.

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