Key Points

Opening his reply to the debate, Balagopal dismissed allegations that he was treating the state's finances like his family property.

He asserted that a steady rise in non-tax revenue had enabled the state government to manage the situation without shutting down the Treasury.

"We are managing financial allocation prudently. Not a single rupee has been diverted by this government. We will not compromise on tax collection or bow down to tax evaders," he said.

Leader of the Opposition and senior Congress leader V.D. Satheesan, however, painted a bleak picture, calling the current crisis "unprecedented in history".

He alleged that even government cheques could not be cleared.

"Supplyco and the Kerala Medical Services Corporation are in deep trouble and arrears to employees and pensioners stand at Rs one lakh crore," Satheesan said, adding that shocking details related to the GST Intelligence were yet to come to light.

Balagopal countered by stressing that the Kerala government's approach was to "hold people together with sincerity", and highlighted achievements such as the Vizhinjam port project.

He assured that funds for contractors and local self-government bodies were being disbursed, and promised that allocations would be released before the upcoming local body elections.

"Despite difficulties, Kerala witnessed an Onam like never before. Nothing has come to a standstill," he remarked.

The Assembly also unanimously passed a resolution opposing the hasty implementation of the Special Investigation and Audit Report (SIAR), noting that it could not be viewed as a mere procedural step.

Congress legislator Mathew Kuzhalnadan, who presented the motion, accused the state government of slashing projects and taking shortcuts in economic management, while criticising serious lapses in tax collection.

The debate laid bare deep divisions, with the Opposition insisting that Kerala is facing a severe liquidity crisis, while the state government said it is effectively managing the challenges without halting essential functions.

- IANS