Kerala: LDF 2.0 soft on Centre in first policy address

THIRUVANANTHAPURAM: Marking a stark deviation from earlier instances, the first policy address of the newly-sworn in LDF government has gone soft on the Centre. The state government has been careful not to make any scathing remarks against central policies while suggesting alternatives.
Despite the state’s repeated and stark criticism of the Centre regarding handling the Covid-19 crisis, especially the vaccine policy, the policy address by governor Arif Mohammed Khan on behalf of the LDF government made no effort to reprehend the Centre. Instead, the address focussed on the state government’s efforts to overcome the vaccine shortage. Stating that the policy of differential pricing of vaccines has put an additional burden of Rs 1,000 crore on the state exchequer, the address said that despite the fiscal constraints, the government has stepped forward to meet these commitments by floating a global tender for procuring 3 crore vaccine doses and also by placing orders with domestic manufacturers for another 1 crore doses.
The state has been demanding that Centre should provide vaccines free of cost, and should also ensure that the companies should not sell the vaccines to Centre and states at different rates.
On fiscal policies too, the address did not make any noteworthy criticism of the Centre. The state had been repeatedly criticizing Centre, alleging that it was trying to roughshod cooperative federalism, not allowing market borrowings beyond the set cap of 3%. The state had been demanding that the borrowing limit be increased from 3% to 5% of GDP. In the wake of the pandemic, the Centre had last year permitted the states to increase the borrowing limit, subject to conditions.
The policy address said that though the conditions imposed are against the spirit of cooperative federalism, the state could achieve all the goals set by the Centre. “It is noteworthy that we have been successful in getting the entire 1.5% additional borrowing limit based on conditions relating to the power sector, public distribution system (one nation - one ration card), ease of doing business and urban sector,” the address said.
Political observers and experts attribute this change to the need of the hour. “The only benefit from being in a conflicting posture with the Centre is political. The present hour does not need any such political mileage, and also there is a clear policy shift on the part of the state government. The chief minister realises and seems to be of the clear opinion that the state and Centre should not be at loggerheads especially when we are going through a crisis like Covid-19,” said G Gopakumar, political scientist and former vice-chancellor of Central University.