They Are Allies Outside Kerala, But Congress Isn't Supporting Left As It Takes Battle Over State's Financial Troubles To Delhi

The Congress party's decision to not participate in the Left Democratic Front's protest against the centre for restricting the state's borrowings, by saying that the state government is also responsible, has once again shown how the two continue to clash at the state level in spite of being allies outside.

The protest is to be led by Kerala Chief Minister Pinarayi Vijayan in Delhi, on 8 February.

The Left, which was part of the Congress-led government at the centre before withdrawing support over the civil nuclear deal with US in 2008, does not see eye to eye with it on a number of state level issues — like the Vizhinjam port or nomination of non-Left candidates to university senates by Governor Arif Mohammad Khan. 

In the latest case, the Congress is not supporting the Left Democratic Front (LDF) government even when it fights the common 'enemy' — the BJP — and is taking the fight to the national capital at the same time as the Congress government in Karnataka is attempting to do the same.

But the two remain keen to contest the upcoming Lok Sabha elections in other parts of the country, like West Bengal, together. In neighbouring Tamil Nadu, the two political forces are part of the Dravida Munnetra Kazhagam (DMK)-led alliance.

V D Satheesan, the Leader of Opposition in the Kerala Assembly, has alleged that the LDF government was mismanaging tax collection, such as from the sale of gold. Further, he said that the state was losing over Rs 5,000 crore a year because of the non-submission of documents by the government to claim its share of integrated goods and services tax (IGST).

The episode has also brought back into focus a whitepaper on the state's economy that was released by the United Democratic Front in January 2023.

It mentioned that the state's revenue deficit rose from Rs 9,657 crore in 2015-16 to Rs 23,176 crore (as per the revised estimates for 2021-22) and the state's total debt was nearly Rs 4 lakh crore, based on figures from the budget estimates of 2022-23.

As per figures mentioned in a report by Mathrubhumi, the debt of the state has seen a large year on year rise since 2016. From the Rs 162,271.5 crore in 2016, the debt increased by 18 per cent to reach Rs 191,622.9 crore in 2017. The figures were Rs 216,499.4 crore, Rs 267,585.4 crore and Rs 310,856.2 crore in 2018, 2020 and 2021 respectively.

The centre has also held the state government to be responsible.

In a note to the Supreme Court, which is hearing a case filed by the Kerala government on the issue, the centre stated that the state was one of the most financially unhealthy in the country and substantial amounts were transferred going beyond the recommendations of the Finance Commission.

Regarding the borrowings, it said, “reckless borrowing to finance unproductive expenditure and poorly targetted subsidies” was causing trouble, reported The Hindu.

According to political observers, while this stance of the Congress might seem contradictory when seen from the national level, it is perfectly in tune with the realities of Kerala.

They add that the stance also helps it to combat the narrative of the Bharatiya Janata Party, which citing their history and closeness outside the state, has been claiming to be the only ‘real opposition’ in the state.