New Delhi, Mar 27 (PTI) Finance Minister Nirmala Sitharaman told the Rajya Sabha on Thursday that the "reckless policies" of the LDF and UDF governments have led to a "fiscal crisis" in Kerala, as she dismissed allegations that the Centre has cut funds for the southern state.

The finance minister also mentioned that the Left front government of EMS Namboodiripad in Kerala was dismissed by the Congress.

"The truth is that Kerala's fiscal crisis is a result of both the LDF and UDF governments' reckless policies and not the fault of the central government. Did it stop us from doing work in Kerala? No," she said.

Amid protests from opposition members and heated exchanges, Sitharaman referred to the Communist Party of India (CPI) government of Namboodiripad being dismissed by the Congress regime at the Centre.

"When the Namboodiripad government was thrown out by the Congress.... Do remember the day when democracy was killed by an elected government being thrown out. Where were you at that time?" she asked.

"You are a Communist party member, you are sitting in alignment with the Congress. The Congress is the one which threw it out, you do not even want to remember that. With respect, I will bring Namboodiripad, the patron of Communism in India," she said.

Chairman Jagdeep Dhankhar pointed out that it was the first-ever elected Communist government in the world.

As some opposition MPs asked what was the relevance of mentioning the point, Sitharaman said, "For me, even the 1959 throwing out of the Communist government is not old. (It) shows how Indian democracy was misused by the Congress." "If a Communist party member asks me what is the relevance of it.... It hurts me to no end. I am surprised. You should never forget," she said.

Dismissing allegations that the Centre is not sanctioning sufficient funds for the southern state, Sitharaman said, "Kerala received Rs 1.57 lakh crore between 2014 and 2024, which is an increase of 239 per cent over the UPA period. How much did it receive between 2004 and 2014? Rs 46,300 crore." "Kerala is being differentiated, discriminated ... please ... we follow the recommendations of the Finance Commission and that is what is going to you. It is not lesser than what you received earlier," she added.

The minister said there was a 509-per cent surge in the grant-in-aid and while the Kerala received Rs 25,630 crore from 2004 to 2014, it received Rs 1.56 lakh crore between 2014 and 2024.

"I am saying this with a sense of responsibility that Kerala has never been supported better than this government, the way Prime Minister (Narendra) Modi has supported it," she said.

"It is hurting to hear Kerala repeatedly saying that you are discriminating against us...," she said.

Sitharaman also quoted a Supreme Court judgment in a case relating to borrowing limits, which said Kerala "has not unutilised the fiscal space and that the state has over-utilised its fiscal space".

She also quoted a CAG audit report and said it observed that in 2022-23, 97.88 per cent of Kerala's debt receipts were utilised for repaying the outstanding debt, which indicated poor debt management by the state government. PTI AO RC

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Reckless policies of LDF, UDF led to fiscal crisis in Kerala: Sitharaman

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