Lok Sabha Question No. 217 (UNSTARRED), answered on 2024-07-22
Subject: Centrally Sponsored Schemes for Kerala
Ministry: FINANCE
Asked by: Shri V K Sreekandan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF EXPENDITURE

## LOK SABHA UNSTARRED QUESTION NO. 217

TO BE ANSWERED ON Monday, July 22, 2024/31 Ashadha, 1946 (Saka)

## Centrally Sponsored Schemes for Kerala

## 217. SHRI V K SREEKANDAN:

Will the Minister of FINANCE be pleased to state:

- a)  whether  it  is  a  fact  the  State  government  of  Kerala  has  urged  the  Central government to increase its share in Centrally Sponsored Schemes from 60% to 75%, if so, the details thereof;
- b)  whether  the  State  has  also  urged  the  Centre  to  provide  more  power  in  the implementation of the CSS and framing of their guidelines; if so, the details thereof;
- c)  whether it is also a fact that the State Government has also sought financial assistance for infrastructure projects; and
- d)  if so, the details thereof along with the steps taken by the government on the request of the State Government of Kerala?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI PANKAJ CHAUDHARY)

(a) to (c): Yes  Sir.  A  letter  from  Sh.  K  N  Balagopal,  Minister  for  Finance, Governmentof  Kerala  dated  27.06.2024  addressed  to  Smt.  Nirmala  Sitharaman, Finance Minister, Government of India enclosing a copy of memorandum submitted during the Pre-Budget consultation held on 22.06.2024, in which a detailed account of various demands of the State of Kerala is mentioned was received in Ministry of Finance. The request from the State Government of Kerala as mentioned in the part (a) to (c) of the question are part of the various demands of the State Government of Kerala conveyed through aforementioned copy of memorandum dated 22.06.2024.

(d): As regards fund sharing pattern, it is to state that the extant fund sharing pattern under Centrally Sponsored Schemes is guided by NITI Aayog vide its O.M. No. O11013/02/2015-CSS & CMC dated 17th August, 2016.

The  ibid  OM  vide  para  6.1  and  6.2  also  provides  flexibility  in  the  choice  of components  under  the  Centrally  Sponsored  Schemes  to  the  States.  Flexi  funds available in each Centrally Sponsored Schemes were raised from 10% to 25%.

To  meet  with  special  fiscal  needs  of  the  State,  Finance  Commission  Grants, Measures to enhance borrowing limits, recourse to Open Market Borrowing (OMB) & 50 years interest free loan under the scheme for special assistance to States have been provided. Details of the same are provided in the Annexure .

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-  Statement  showing  Releases  of  grants  to  the  State  Government  of  Kerala  by Ministry of Finance as recommended by the 15 th Finance Commission

|       |                                               | (Rs. Crore) th   | (Rs. Crore) th   | (Rs. Crore) th   | (Rs. Crore) th   |
|-------|-----------------------------------------------|------------------|------------------|------------------|------------------|
| S. No | Components                                    | 2020-21          | 2021-22          | 2022-23          | 2023-24          |
| 1.    | Post Devolution Revenue Deficit Grant         | 15322.80         | 19891.00         | 13174.00         | 4749.00          |
| 2.    | Union Share of State Disaster Response Fund   | 314.00           | 251.20           | 264.00           | 277.60           |
| 3.    | Union Share of State Disaster Mitigation Fund | 0                | 62.80            | 0.00             | 100.70           |
| 4.    | Urban Local Bodies grants                     | 784.00           | 336.00           | 604.00           | 400.36           |
| 5.    | Rural Local Bodies grants                     | 1628.00          | 1203.00          | 1246.00          | 1260.00          |
| 6.    | Health Sector grant                           | 0.00             | 427.13           | 94.30            | 458.03           |
|       | Grand Total (1+2+3+4+5+6)                     | 18048.80         | 22171.13         | 15382.30         | 7245.69          |

Note: - In addition to above, in F.Y 2024-25 (up to 18-07-2024), Rs. 34.70 crore has been provided to the State Government of Kerala as Union Share of State Disaster Mitigation Fund.

-  Other  fiscal  measures  taken  by  Union  Government  to  make  sufficient  financial resources available with the State Government of Kerala are as below:

## For the year 2024-25

- (i) Normal Borrowing Ceiling (NBC) of Kerala has been fixed at 3 percent of GSDP, amounting to Rs. 37,512 crores.
- (ii) Gross Borrowing Ceiling of Kerala has been fixed at Rs. 48,171.55 crore after adjustment in NBC for repayment of loans, additional borrowings, offbudget borrowings and over/under utilization of previous years borrowings.
- (iii) An additional  borrowing  of  Rs.  1,998.42  crore  has  been  provided  to  the State Government of Kerala for amount deposited under the New Pension System (NPS).
- (iv) Further, the Government of Kerala is also eligible for 50 years interest free loan  under  the  Scheme  for  Special  Assistance  to  States  for  Capital Investment. An amounting to Rs. 1,059 crores have been allocated to the State under Part-I (untied) of the scheme.
- (v) As per the request of the State Government of Kerala, adhoc consent of Government of India under Article 293 (3) of the Constitution of India for raising Open Market Borrowing (OMB) for an amount of Rs. 3,000 crores have  been  issued  to  the  State  Government  of  Kerala  for  the  first  nine months of FY 2024-25.