New Delhi >Kerala Chief Minister Pinarayi Vijayan, in his speech at 4th Governing Council Meeting of NITI Aayog, criticized terms of reference of the Fifteenth Finance Commission that created apprehensions. He urged the Union Government to reframe these terms of reference in such a way to ensure real fairness and equity in the matter of devolution of resources to the States. 'The introduction of Goods and Services Tax limited freedom of States to raise financial resources. Although there were expectations of a buoyant revenue growth as Kerala is a consumption-oriented State, there have been substantial revenue losses and we are still dependent on compensation'- Kerala CM said.
Full text of Pinarayi Vijayan's Speech
This meeting of Governing Council is being held at a time when sweeping changes are under way in the global economic and trade policy environment, with consequences across countries, including ours.
Kerala has continued with the planning process and has formulated the Thirteenth Five-Year Plan. We are in the second year of our Plan.
Our strategy for the Thirteenth Plan includes strengthening Kerala's physical and social infrastructure; increasing material production in agriculture and industry; generating employment, skill development, and entrepreneurship; extending social protection and implementing policies against gender and social inequality. We seek to build a new Kerala through four Missions that emphasise sustainable development and people's participation in high-quality school education; people-friendly health facilities; nature-friendly agriculture; integrated waste management for a clean environment, enhanced water resources; and secure housing and livelihoods.
The introduction of Goods and Services Tax from July 1, 2017 onwards limited the freedom of States to raise financial resources. Although there were expectations of a buoyant revenue growth as Kerala is a consumption-oriented State, there have been substantial revenue losses and we are still dependent on compensation.
Our development efforts have been constrained by changes in the funding pattern of centrally sponsored schemes. The changes have increased the State's contribution to CSS, resulting in shrinking the fiscal space of the State.
The terms of reference of the Fifteenth Finance Commission have also created apprehensions. I urge the Union Government to reframe these terms of reference in such a way as to ensure real fairness and equity in the matter of devolution of resources to the States.
Despite fiscal constraints, the State has undertaken several initiatives to improve the life of the people. Let me share some of the efforts we have taken. Kerala is ahead of States in poverty reduction and human development.
The State has been active in implementing the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013. Kerala was declared an open-defecation-free State almost a year ago. Kerala leads the States with respect to the achievement of the United Nations Sustainable Development Goals.
Kerala's experience with Local Self Government has been distinct in three important ways. First, financial devolution is more significant in Kerala than elsewhere. Secondly, the role of Local Bodies in formulating and implementing development policies is greater than elsewhere. Thirdly, the extent of people's participation in implementation is greater than elsewhere in the country.
For Non-Resident Keralites, the Government of Kerala has constituted the Loka Kerala Sabha, the first of its kind in any State of India, to serve as a common platform for Non Resident Keralites across the globe.
Kerala is committed to industrial development, particularly in the chemical, pharmaceuticals, and agro-industrial sectors based industries.
With respect to agriculture, Kerala wants to use its immense biological resources to improve farmers' livelihoods. We recorded a positive growth in 2016-17 after negative growth for the three years preceding 2015-16. In order to meet the national commitment to doubling farmers' income, States must be given more funds in order to be able to intervene in lowering costs and improving product prices, and providing scientific and technical services to farmers.
The State is implementing tourism projects that have relevance to our national heritage. Among such current projects are Kshetranagari, the Kochi Muzris Biennale, and maritime heritage project.
We urge you to recognise that our environmental efforts in respect of our maritime and forest wealth is a contribution by the State to the national and global public good.
The State will converge all Central and State housing schemes to build houses for nearly 5 lakh families in the next three years. Kerala has also introduced a project named Apna Ghar to house migrant workers. I request the Hon'ble Prime Minister to make a larger allocation to the State by frontloading Central Assistance to rural housing in the next three years.
The State has integrated Ayushman Bharat to the State's Aardram Mission, whose aim is to create a patient-friendly health system to deliver quality services. I urge the Central Government to enhance central assistance in this regard.
The recent Nipah virus outbreak demonstrated the need for advanced diagnostic and treatment facilities. Kerala remains one of the few States that have not been allotted an All India Institute of Medical Sciences. We once again request the Centre to allot an AIIMS to the State.
As part of the Haritha Keralam Mission, we are addressing the issue of contamination of rivers and waterbodies by encouraging a mix of technology options to control and manage waste. These include centralised treatment facilities for urban areas and decentralised in situ treatment in rural areas. We urge the Central Government to support us in this endeavour.
Kerala has in place a comprehensive project to develop waterways by connecting Kovalam in the south to Bekal in the north, a distance of 590 kilometers, and by linking existing waterways and canals to the National Waterway III. We are grateful to the Union Government for agreeing to participate in developing this water transport corridor. I urge the Central Government to expedite the formalities for participation in this project.
Access to Internet is considered a basic human right in Kerala. The mobile tele-density was more than 115 per cent in 2017. The Internet penetration in the State is 52 per cent. Kerala has launched M-Kerala, a unified app for all Government services. I urge the Central Government to support further initiatives of Kerala in the field of information technology.
Kannur International Airport would start the commercial operations by September this year. All airlines from Gulf region and few from South East Asia have shown keen interest to operate from this airport. I would urge the Hon'ble Prime Minister for allowing each of the interested airlines to operate two flights as a day as special dispensation as was done earlier in the case of Calicut Airport.
Kerala Rail Development Corporation Limited, a Joint Venture Company between Ministry of Railways and Government of Kerala, is proposing a semi-high speed rail line between Trivandrum and Kasargod (510 km) at an estimated cost of Rs.46,769/- crore. The feasibility report for the project has been sent to Railway Board in December 2017 and the Detailed Project Report is under preparation. Government of India may convey the 'in principle' approval for taking up the above project.
Rubber is a major agriculture commodity which is subject to frequent adverse price fluctuation and this has badly affected the lives of lakhs of small and marginal farmers. I would request the Hon'ble Prime Minister for his kind intervention for fixing a support price based on the formula of Dr. M.S. Swaminathan Committee as agreed to by Central Government. i.e, cost of production with 50% increase of that cost.
Coconut farmers are also facing adverse situation due to increasing cost of production and pest attack. Therefore I also request a minimum support price for copra be fixed based on the above formula.
Kerala Government is undertaking construction of Coastal Highways of 651 km and Hill Highway of 1250 km at a cost of Rs 10000 crore. I would request the Central Government to bear a portion of the construction cost.
Sabarimala temple is of national importance and Angamali- Sabarimala railway project is beneficial to millions of pilgrims from southern states such as Karnataka, Tamilnadu, Andhra Pradesh and Telengana, I request the Hon'ble Prime Minister that the work be funded 100% by Ministry of Railways as envisaged originally.
In the third meeting of the Governing council of NITI Aayog, I had expressed our commitment to 100 per cent electrification of households, sustainable and modern energy for all, and diversification of our energy sources. Kerala achieved the 100 per cent goal in May 2017.
The State Government has an LED policy of replacing all incandescent and fluorescent lamps with energy efficient LED lights. I request the Union Government to support the LED Kerala Mission under the UJALA scheme of the Ministry of Power and through CSR funds of Public Sector Undertakings.
The State has initiated steps to celebrate the 150th birth anniversary of Mahatma Gandhi, , to encourage principles of tolerance, non-violence and humanism among youth, the leaders of tomorrow's India. A programme titled Raktasakshyam will cover places in the State visited by Mahatma Gandhi.
Four years have passed since NITI Aayog came into being. It is time to reflect on its achievements. I suggest a committee of Chief Ministers to look into the working of the NITI Aayog. It could make recommendations that can be considered at the next Governing Council meeting.
Cooperative federalism can be achieved only if States are equal partners in the development process. We seek your cooperation in our effort to ensure the people of Kerala a just, secure, productive, and sustainable social and economic order.
