By P. Sreekumaran
THIRUVANANTHAPURAM: The Left Democratic Front (LDF) Government in Kerala sent a powerful message to the Union Government by launching a day-long satyagraha against its anti-people policies in Thiruvananthapuram on Monday.
Chief Minister Pinarayi Vijayan, who inaugurated the satyagraha, described it as a fight for survival in an ‘extraordinary situation’ where the State was being discriminated against and denied its rightful share of financial resources and support. The protest was attended by Ministers, MLAs and LDF leaders.
The Chief Minister strongly criticized the Union Government for adopting a biased and vengeful attitude towards Kerala. What the State is demanding only what it is constitutionally entitled to it. Through its policies, he added, the Union Government was trying to hinder the State’s progress.
In a dig at Union Home Minister Amit Shah, Pinarayi said his dream of capturing Kerala would not come true. He also lambasted Shah’s claim on Kerala’s tax share. The State’s share has plummeted during the `15th Finance Commission period compared to the 14th. He also wanted Shah to clarify the Union Government’s stand non Niti Aayog CEO BVR Subrahmanyam’s reported statement that the Modi Government had tried to make the 14th Finance Commission slash the tax share of the States. As the Prime Minister has not denied it so far, Shah should clarify it, he added.
The CM also presented figures to support the State government’s charge that Kerala was being discriminated against. In the latest instance, the Modi Government has slashed Rs 5,900 crore from the State’s eligible borrowing limit of Rs 12,000 crore for the January-March quarter.
The CM said payments pending from the Union Government till 2025 amounted to Rs 5,783.69 crore. These include Rs 636.88 crore under the National Health Mission, Rs 750.93 crore under UGC benefits, Rs 324 crore under the Central share of social security pensions, Rs 1206. 69 crore for paddy procurement, Rs 1248.13 crore under Samagra Shiksha Kerala, Rs 974.68 crore under Jal Jeevan Mission, Rs 200 crore under Posh Abhiyan, Rs 151.63 crore under fisheries development, Rs 54. 19 crore under food security schemes, Rs 43. 44 crore under Garib Kalyan Anna Yojana, Rs 37. 40 crore under dairy development schemes and Rs 55.51 crore under women and child development schemes.
And, what is the response of the combined opposition in the State to the satyagraha? Instead of extending support to it, the Congress-led united Democratic Front(UDF) and the BJP have unleashed ill-informed criticism. The protest is merely to cover up the ‘unholy political alliance between the CPI(M) and the BJP. That is the crux of their criticism. But then, there is nothing new in the negative attitude adopted by the opposition as it has been their stand all along.
Meanwhile, Kerala, which has been buffeted by frequent natural disasters, has urged the Union Government to consider issuing ‘catastrophe bonds’ as protection against disaster-caused losses.
The request is part of Kerala’s ‘wish list’ for Union Budget 2026-27 presented by State finance minister K. N. Balagopal at the pre-Budget consultation convened by Union Finance Minister Nirmala Sitharaman in New Delhi on Sunday.
Catastrophe bonds or CAT bonds are insurance-linked securities which transfer the financial risks from natural disasters from the bonds issuer to the capital market. At present, the financial risk is borne by the State or Union Governments, affecting the outlays for other programmes.
At present, States find it extremely difficult to raise at short notice sums in excess of Rs 2000 crore for disaster relief. If the Union Government institutes catastrophe bonds, they would be of tremendous help to the States in the event of natural disasters, Balagopal pointed out.
In support of his argument, Balagopal said countries like Mexico and the Philippines have been using CAT bonds to protect themselves against disaster-linked losses. It may be mentioned that“The Guideline Risk for Informed Master Plan” approved by the Kerala Government in June 2022 had referred to the catastrophe bonds and their potential. Risk transfers can be obtained through insurance policies or capital market instruments such as catastrophe bonds. The insurance and reinsurance sectors are the main sources of risk transfer, although capital markets provide an alternative source, the document had noted.
The Kerala Finance Minister has also urged the Union Finance Minister to establish a Coastal Resilience Fund for covering the construction of seawalls, flood mitigation and restoration of mangroves along coastlines. Kerala has been battling coastal erosion along its 590-km coastline. Kerala’s vulnerability to climate risks makes it a natural pilot for national resilience programmes, he added.
This being the grim reality, Kerala has sought a “Special Fiscal Correction Package” to make up for a “severe resource gap” of over Rs 21,000 crore arising from the current year’s “borrowing constraints”, the establishment of a defence research and development corridor, and a Rs 1000-crore Central assistance for developing a dedicated strategic rare earth corridor project linking Vizhinjam, Chavara and Kochi to tap the State’s coastal mineral sand reserves. The wish list also includes a demand for roll-back of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme and restoration of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) framework. (IPA Service)
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