Thiruvananthapuram: The adjournment motion on the financial crisis in Kerala held at the Legislative Assembly here on Tuesday witnessed the opposition lashing out at the financial practices of the state government.

Opposition leader and Congress chieftain VD Satheesan accused the state government of lapses in collecting tax. He alleged that the state is heaven for tax fraudsters.

Congress MLA Mathew Kuzhalnadan criticised the state government by pointing out its failure to collect taxes. Speaking in the Assembly, Kuzhalnadan said that Kerala has become the most indebted state in the country and that the state is blaming the Centre for reducing the borrowing limit.

“At present, Kerala’s debt is 39.1 percent, while during UDF’s tenure, it was less than 30 percent. Such a huge debt was incurred within seven years of the government coming to power. And then they want permission for more loans. You cannot blame the central government,” Kuzhalnadan said. He said that the government needs to collect Rs 28,257 crores.

Similarly, MLA Roji M John said that the tax administration system in the state has failed and the main reason for the current financial crisis in the state is the previous Left government. When GST was implemented, the government completely failed to bring timely changes in the tax administration system. IGST collection is inefficient. 

“Along with wastefulness, corruption, and mismanagement of the government, the attitude of the central government has also increased the momentum of the crisis, Roji M John criticised. Even the finance minister admitted that there has not been an expected increase in tax collection. When looking at the monthly figures, the growth rate of GST collection in Kerala is below the national average,” John said. 

“Thomas Isaac was most in favour of GST and claimed that there would be an increase in income up to 25 percent. Even after six years, Kerala’s tax collection has not increased by even a single rupee,” he claimed.

The MLA said that it is clear in the study of economist Mary George that it is not possible to collect tax on even 20 percent of the total gold sales and the government has been unsuccessful in collecting the turnover tax on alcohol sales. 

“The opposition has repeatedly said that the debts associated with KIIFB and the pension fund will come under the state’s debt. It has now become clear that the opposition was right. Karunya schemes, social security schemes, welfare pension funds, everything is in disarray. The lawyer who argued in the Ayodhya case is being brought in to defend the Chief Minister’s daughter. The government has Rs 25 lakh to pay the lawyer but not enough funds to pay the common man,” the MLA alleged.

Meanwhile, Kadakampally Surendran took a dig at Congress and asked everyone to stand and show respect to the latter for its audacity to name and criticise the Centre. Kadakampally also accused the Congress leaders of not talking about the people responsible for the financial crisis in the state. 

“When the state share which was 32 percent during the 13th finance commission was to be increased to 42 percent in the 14th finance commission, it was revealed that Narendra Modi himself intervened through the back door to reduce the tax share of the states in the form of taxes and grants,” Kadakampally said. 

He also accused the Congress of trying to save the central government which is showing hostility towards Kerala in every way and that the party should instead join in the struggles against the centre.

Finance minister K.N Balagopal said that the Centre is trying to destroy the state by attacking its financial rights. He maintained that Kerala is not in a dire state. The government maintained its stance and repeated that it was the Centre’s deliberate ignoring of the state’s need and non-payment of arrears that led to this situation. He also said that the opposition should join in the protest against the Centre that the government plans to carry out in Delhi. 

Balagopal completely denied the accusations of wastefulness pointed out by the opposition and maintained that programs like the Nava Kerala Sadas and Keraleeyam were for showcasing the achievements of the state and that they were for the benefit of the people. 

The opposition finally walked out of the House in protest, alleging a lack of any plan on the part of the government to improve the state's plight.