Kerala facing financial difficulties due to absence of GST compensation: Governor Rajendra Arlekar in policy address

In the opening speech of the 15th Kerala Legislative Assembly's 13th session, Governor Rajendra Arlekar shed light on the state's worsening financial situation, attributing it to the central government's refusal to extend GST compensation. This policy shift, he asserts, disproportionately affects states committed to public welfare and social infrastructure development, highlighting the central authorities' indifference to equitable growth.

During the policy address at the 13th session of the 15th Kerala Legislative Assembly, Governor Rajendra Arlekar provided a sobering analysis of Kerala's fiscal woes. He pinpointed the state government's inefficiency and overdependence on ceased GST compensation and dwindling central grants as the root causes. This revelation calls for a reconsideration of Kerala's fiscal strategies and aims to highlight the necessity for states to adopt more sustainable financial models without relying heavily on central funding.