Kerala Speaker adjourns Assembly after opposition uproar over hike in fuel and liquor prices

Opposition leaders during a march from MLA Hostel to Kerala Legislative Assembly to protest against the state budget, in Thiruvananthapuram on Thursday | Photo Credit: Mahinsha S

Speaker AN Shamsheer adjourned the Kerala Assembly till February 27 following strong opposition protests. Increase in prices of fuel, piped water, electricity and liquor,

Legislators of the Congress-led United Democratic Front (UDF) marched from the nearby MLA hostel to the Assembly complex. They displayed a long banner accusing the government of dacoity and pickpocketing.

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protest inside the assembly

Later, the protesting legislators came to the Well of the House, disrupting the Question Hour. They raised slogans against the fiscal policy of the government.

Mr Shamsheer’s appeal for calm also failed to quell the vociferous protests.

The Speaker hurried through the day’s business, requested the ministers to table their reports, and adjourned the House.

Four opposition MLAs protesting outside the assembly hall ended their protest.

leader of opposition

Leader of the Opposition, VD Satheesan said that two consecutive terms in power have made the ruling Left Democratic Front (LDF) alliance arrogant and disconnected from the sufferings of the common man.

The government’s draconian budget tax proposals will constrain public expenditure and deaden markets, leading to a further decline in the state’s tax income.

social security cess Inflation on fuel will get out of control. This will make daily commuting and transportation of goods and services costlier.

Increase in electricity and piped water rates will further reduce the disposable income of households and constrain their spending power.

Mr Satheesan said the LDF government had forced the people to pick up the huge public debt tab because of the administration’s financial mismanagement.

He said that check posts have become the way of corruption. Careless tax administration has reduced the revenue of the state. The opposition has no option but to intensify its strike against the price hike.

Meanwhile, a damning Comptroller and Auditor General (CAG) report criticizing the government for inefficient tax collection, resulting in an estimated ₹7,100 crore revenue shortfall in the last financial year, enraged the opposition.

Mr Satheesan is likely to raise the CAG’s findings to censure the state’s allegedly lax tax administration.

Read this also |Explained | Kerala’s rising public debt

Defense of Finance Minister

Meanwhile, Finance Minister KN Balagopal reiterates government’s resolve not to withdraw tax proposals,

He said the government had no option but to raise “minimum” taxes and levy a cess on fuel and liquor to raise resources for the state’s welfare and social security initiatives.

Shri Balagopal said that the Bharatiya Janata Party (BJP)-led central government’s pressure on states’ finances has led to an unprecedented financial crisis.

The Center froze GST compensation, reduced the divisive pool dividend to the states and slashed the revenue deficit grant. The Center has also gradually reduced food and social security grants.

Center wrongly reduced borrowing limits of states by including loans from state-run entities and special purpose vehicles Kerala Infrastructure Investment Fund Board (KIIFB) under the burden of public debt.

Mr. Balagopal said, ideally, the opposition should cooperate with the government to oppose the Centre’s anti-state fiscal policies. The Center has systematically destroyed the principles of fiscal federalism enshrined in the Constitution. However, the Congress remained silent on the Centre’s trespasses and overreach in jurisdiction.

The Left Democratic Front (LDF) convenor mocked the UDF legislators’ assembly march as an “accidental morning walk”. He said that it is imperative to raise additional resources through special taxes to sustain the social welfare programs of the state.