UDF alleges poor fiscal management for Kerala's financial crisis

Thiruvananthapuram | The Opposition Congress-led UDF on Monday alleged that poor financial management by the state Finance Department has pushed Kerala into its current "financial crisis".

Congress MLA Mathew Kuzhalnadan told the Assembly that the government had "thoroughly failed" in tax collection and pointed out that the state's GST growth had dipped by 2.52 per cent during 2024-25.

He accused the government of trying to manage the economy in a "cunning manner" by curtailing project expenses and imposing restrictions on the clearance of bills at the treasury.

Earlier in the day, the government accepted an adjournment motion notice moved by Kuzhalnadan seeking a debate in the House on the alleged "financial crisis and the derailment of welfare initiatives." "The poor management of the Finance Department is the reason for all the issues being faced by the state now," the MLA claimed.

He added that recent GST reforms by the Centre, the US tariff hikes, and the increase in H-1B visa fee would also impact the state's economy. However, the CPI(M)-led government had not conducted any in-depth study or made any announcement on the matter, he said.

Rejecting the allegations, CPI(M) legislator P Nandakumar said the state government had not backtracked on any welfare programme thus far.

He alleged that the Congress, which was now criticising treasury regulations, had itself "shut down the treasury during its rule".