Kerala FM Demands GST Compensation Continue, Opposes MGNREGA Funding Shift

Speaking to reporters after attending the pre-budget consultation meeting with Union Finance Minister Nirmala Sitharaman in the national capital, Balagopal said Kerala placed several specific demands before the Centre, highlighting fiscal challenges faced by states due to both domestic and international factors.

"We made some specific demands that GST compensation should continue. Because of the global economy and Trump, every state is facing some problems, even the national economy, for that matter," Balagopal said.

Balagopal also raised concerns about proposed changes to the MGNREGA funding pattern, particularly the reported shift to a 40:60 cost-sharing mechanism between the Centre and the states. He said such a model would not be viable for Kerala.

"In case of G-RAM G Bill, we are demanding that the existing system of MGNREGA should work because this 40-60 system will not be feasible for us," he said.

Union Minister for Finance and Corporate Affairs Nirmala Sitharaman chaired the Pre-Budget Consultation meeting with States and Union Territories (with Legislature) for the forthcoming Union Budget 2026-27 in New Delhi.

Along with Union Minister for State for Finance Pankaj Chaudhary, the meeting was also attended by Governor of Manipur; Chief Ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya, and Sikkim; Deputy Chief Ministers of Arunachal Pradesh, Madhya Pradesh, Odisha, Rajasthan and Telangana; the Finance Ministers of States/UTs, besides Secretaries of Departments of Economic Affairs, Expenditure, and Revenue, and senior officials of the Ministry of Finance.

While speaking with the reporters after the meeting, Goa Chief Minister Pramod Sawant said, "We specifically demanded that the central schemes currently running for Goa be continued. As a tourism state, we have particularly requested assistance for the tourism sector. We also demanded funds for the health sector. Funds for the infrastructure development of Kushavati, which we have newly created as a district, were also discussed."

- ANI