Centre strangulating Kerala financially: Thomas Issac

Thiruvananthapuram, Jan 9 (IANS) Blaming the central government for Kerala's financial woes, Finance Minister Thomas Issac said here on Thursday the Centre was strangulating the state by even reducing grants and loans due to it.

"Rs 10,233 crore loan is due from the Centre in the last quarter of FY20. But we have received only Rs 1,900 crore. Last year, Rs 19,500 crore was received. Even the allocation under the goods and services tax (GST) is not coming," said Issac.

The Centre was maintaining stoic silence on all these, added the economist-turned-politician.

Stating that Kerala is passing through one of its worst financial crises, Issac said, "The situation is so bad that more stringent treasury curbs will have to be put. Spending caps have to be imposed soon."

Last week, Union Home Minister Amit Shah chaired a meeting for disbursement of funds to flood-hit states where seven states were given Rs 5,908 crore, but Kerala didn't receive anything, he said.

"This is a blot on the Centre-state relations," Issac said.