In a burgeoning political debate surrounding the PM Schools for Rising India (PM SHRI) initiative, Kerala’s Finance Minister, K.N. Balagopal, did not hold back. On Monday, October 27, 2025, he sharply criticized the Union government, accusing it of imposing stringent pre-conditions for various schemes and unduly pressuring states into compliance.
Addressing the press in Thiruvananthapuram, Mr. Balagopal highlighted a significant financial grievance, stating that the central government is indebted to Kerala by an estimated ₹10,000 crore, spread across multiple state departments. He deemed the Centre’s strategy of withholding funds for other crucial programs unless Kerala enrolled in PM SHRI as “unfair.”
The Finance Minister emphasized the critical importance of “fiscal federalism,” asserting it’s far from a trivial matter. “The core principle is clear,” he explained. “Regardless of whether it’s the PM SHRI program or any other initiative, state governments are entitled to their due revenue. It is simply unacceptable to attach conditions to the release of funds that a state is inherently eligible to receive.”
Balagopal further stressed the necessity of adaptable scheme implementation. He argued that a “one-size-fits-all” approach to national scheme deployment across diverse states is fundamentally impractical and fails to acknowledge local realities.
Commenting on Tamil Nadu’s recent action of appealing to the Supreme Court regarding halted education funds, Mr. Balagopal noted that while Kerala aims for a cooperative relationship with the Centre on administrative matters, it will not shy away from defending its rights. He proudly mentioned that Kerala was the first state to challenge the Centre in the Supreme Court concerning reduced borrowing limits, and both the Chief Minister and he himself had previously led protests in New Delhi to voice opposition against perceived discrimination towards the state.