The latest instance of the Congress’s pusillanimity is evident from its refusal to join the CPI(M)-led Left Democratic Front (LDF)’s protest against the Union Government at Jantar Mantar in New Delhi on February 8. The protest will be led by none other than Kerala Chief Minister Pinarayi Vijayan and attended by his ministerial colleagues. The stir is in protest against the Union Government’s discrimination against Kerala, which has taken a more aggressive form of late.

The Congress has refused to support the stir on the specious plea that the financial crisis Kerala is facing is due to what it called fiscal mismanagement of the State Government. The Government, the Congress would have the people believe, that the crisis is entirely due to the failure to improve tax collection and check wasteful expenditure!

Nothing is far from truth. Facts tell a different story altogether. First let us look at tax collection. The Congress is uttering an unadulterated lie when it says that the government has failed miserably in improving tax collection. Tax collection has, actually, increased by more than 22 per cent over the last two years – up from Rs 47,000 crore to over 71,000 crore. It is set to become even better as the Government has taken a slew of steps to better its performance on the tax collection front.

The Congress-led Opposition’s efforts to put the government on the mat have failed dismally. The Opposition’s chance came when the Government agreed to discuss the financial situation by suspending the day’s business in the State Assembly. The fear of the Union Government was clear from leader of the opposition V D Satheesan’s refusal to even acknowledge the Centre’s discrimination against Kerala. He blamed it all on the State Government. Obviously, the Congress leaders in the State do not want to offend the Modi Government and face raids from the Enforcement Directorate and the Income Tax Department.

The opposition’s arguments came unstuck when finance Minister K N Balagopal forcefully countering its contention. The FM squarely blamed the Modi Government for the State’s fiscal ill-health. The State Assembly should in fact pass a resolution on the issue, argued Balagopal. His stand evoked strong support from the LDF’s allies as well. He demolished LOP’s stand that the government was blowing it out of proportion by claiming that the Union Government had deprived the State of Rs 57,000 crore annually. The actual amount, according to him was only Rs 3,100 crore! Balagopal countered by pointing out that this year, the Union Government deprived Kerala of Rs 21,000 crore in devolved taxes, Rs 12,000 crore due to discontinuation of GST compensation, Rs 8,400 crore in revenue deficit and 19,600 crore on account of slashed borrowing capacity.

Balagopal also attributed the decline the state’s tax revenue from gold sales to the Union Government’s policy. The tax rate on gold has come down from five per cent under the VAT regime to 3 per cent under GST. As a result, the State Government will receive only half of the revenue. The rest, he said, would go to the Union Government. The real reasons for the state’s fiscal crisis is the 15th Finance Commission’s decision to lower the devolution rate for the State from 2.5 to 1.92, and the Modi Government’s flawed policies. Despite the crisis caused by the Union Government’s hostile attitude, the State Government managed to improve disbursal through the treasuries from Rs 1.21 lakh crore to Rs 1.26 lakh crore. This is a commendable feat, he claimed. And he does have a point.

It must be pointed out that the Congress in the State simply does not have the stomach to take on the Modi Government. It is labouring under the misconception that silence is the best policy under the circumstances. But the party must realize one thing. The people of Kerala are intelligent enough to see through the political chicanery and double standards of the Congress. The party will have to face a heavy price in the upcoming parliamentary polls for its failure to stand up to the Union Government to protect the State’s interests. Will the Congress see the writing on the wall? That is the million dollar question.

Interestingly, the Indian Union Muslim League (IUML), the second most important partner of Congress in the United Democratic Front (UDF) took a slightly different stand. IUML leader P K Kunhalikutty admitted the Centre’s discrimination against Kerala. But his party was unable to join the protest because of the proximity of Lok Sabha elections! Such a stand in an election would affect the party’s as wells the UDF’s electoral prospects, he claimed. The boot is on the other leg, Mr Kunhalikutty. If the UDF attends the protest, it would send a powerful message to the Modi Government that Kerala, with the exception of the BJP, is united in its strong protest against the Kerala-hostile attitude of the Centre. Kunhalikutty is also on a weak wicket when he argues that the joint protest would erode the UDF’s vote base. If anything, such a principled stand would only add to the reputation and credibility of the UDF. (IPA Service)