K M Mani blames the Centre for financial crunch

Kottayam: Finance Minister K M Mani has put the blame on the Centre for the financial crunch the State government faces at present.

Talking to reporters here on Monday, the minister said that the Central government cut down the tax-share allotted to the State annually putting it in financial difficulty.

“The State government gets a tax-share of Rs 8100 crore every year from the Central government. They, however, cut the amount to Rs 7000 crore last year. The State will be getting that amount this year too. The recent tax increment is to overcome that shortage of that Rs 2100 crore,” Mani said.

He said the liquor ban had nothing to do with the tax hike.

The Kerala Congress (M) chief added that the Cabinet would discuss the demands to withdraw the rate hike on drinking water by 50 per cent.

Earlier, Mani had blamed the expenditure incurred on non-budgetary proposals for the economic difficulties.