Kerala Chief Minister V.D. Satheesan Discusses Financial Crisis with PM Modi and Finance Minister Nirmala Sitharaman

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Ganpat Singh Chouhan

Kerala Chief Minister V.D. Satheesan Discusses Financial Crisis with PM Modi and Finance Minister Nirmala Sitharaman

New Delhi, May 27: Kerala Chief Minister V.D. Satheesan made his first official visit to New Delhi on Tuesday since taking office. During this visit, he met with Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman to discuss the state’s financial situation, pending projects, and the roadmap for future development.

After the meetings, Satheesan addressed the media, stating that he informed the central government about Kerala’s priorities, ambitious projects, and the necessary support for long-term reconstruction plans.

He acknowledged that Kerala is facing a severe financial crisis but refrained from elaborating on the issue. He announced that the state government’s ‘white paper’ on finances would be released on June 1.

Satheesan mentioned that the state government has initiated the process of preparing this document, which is expected to present the actual financial situation inherited by the newly formed Congress-led UDF government.

He emphasized that the state would prioritize its key infrastructure and development projects in the upcoming state budget before formally presenting them to the central government.

Additionally, he urged the central government to provide more flexibility regarding loans taken by states and requested intervention to reduce restrictions that hinder Kerala’s financial resource mobilization.

The Chief Minister stated, “We have informed the central government about our vision for building a ‘New Kerala.’” He added that soon all departments would be instructed to conduct a comprehensive review of the outstanding amounts owed from the center and the status of funds received so far.

Regarding the controversial ‘PM Shri’ scheme agreement signed by the previous Left government, Satheesan noted that the new government is reviewing the matter.

He also mentioned the suspension of five police officers linked to former Chief Minister Pinarayi Vijayan, following an alleged attack on Youth Congress workers during the ‘New Kerala Journey.’

Satheesan indicated that a special investigation team has submitted its report, and the first phase of action has already begun, with further action to follow if necessary.

He expressed hope for an upcoming meeting of the Kerala Infrastructure Investment Fund Board, stating that the state government would determine its strategy after reviewing the report.

Addressing the rising global tensions in West Asia, the Chief Minister warned that increasing oil prices and Kerala’s dependence on remittances from Gulf countries could severely impact the state’s economy and exacerbate inflation, which is already high in the country.

Satheesan concluded, “All these concerns were presented to the center.” He noted that this was a courtesy meeting, and future discussions would focus on specific demands and proposals. He is expected to meet with Union Home Minister Amit Shah on Wednesday.

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