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Union Finance Minister Nirmala Sitharaman met with Kerala Chief Minister Pinarayi Vijayan in the national capital on Wednesday, marking a significant development amid the ongoing financial tensions between the Left Democratic Front (LDF)-ruled Kerala and the BJP-led Central government.
The meeting, attended by Kerala Governor Rajendra Viswanath Arlekar and Kerala’s Special Representative KV Thomas, was described as “informal” by the state government. However, given the backdrop of Kerala’s repeated demands for central relief funds and financial assistance, the discussion holds major political and economic significance.
Had a warm interaction with Union Minister of Finance and Corporate Affairs @nsitharaman, in the presence of @KeralaGovernor, at Kerala House in New Delhi. Kerala’s Special Representative in Delhi, Prof. KV Thomas, also attended the meeting. pic.twitter.com/PiWanEmkec
— Pinarayi Vijayan (@pinarayivijayan) March 12, 2025
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State vs. Centre: Key Issues on the Table
The Kerala government has been vocal about several contentious issues, including:
- The relief package for disaster-hit Wayanad
- Reduction in central fund allocations
- The limitation on state borrowing limits
- The discontinuation of GST compensation
- The Centre’s reluctance to finance Kerala’s honorarium for ASHA workers
With the state’s financial crisis worsening, the meeting is seen as an attempt to ease Centre-State tensions.
Opposition Congress Alleges LDF-BJP Nexus
The Congress-led United Democratic Front (UDF) has raised concerns about an alleged political understanding between the LDF and BJP ahead of the upcoming elections. Congress MPs, who were also present at the meeting, assured Vijayan that they would support the LDF in lobbying for Kerala’s financial dues at the central level.
Delhi Meeting Signals Policy Shift?
Sitharaman’s arrival at Kerala House, followed by a 50-minute discussion over breakfast, suggests a potential softening of relations between the Centre and the state government. While official details of the meeting remain undisclosed, its political implications are already being debated.
As Kerala continues to face economic hardships, the outcome of this meeting could determine the future course of its financial dealings with the central government.
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