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Amid the political row over the PM Schools for Rising India (PM SHRI) scheme, Finance Minister K.N. Balagopal on Monday (October 27, 2025) slammed the Union government for setting pre-conditions for schemes and coercing States to agree with them. Talking to reporters in Thiruvananthapuram, Mr. Balagopal said the Union government owed close to ₹10,000 crore to various departments in the State. The Centre’s approach of withholding funds for other schemes unless the State signed up for PM SHRI was unfair, Mr. Balagopal said. The Finance Minister said that fiscal federalism was “not a small issue.” “What is the fundamental issue? Whether it is the PM SHRI or some other scheme, the State government should receive its eligible revenue. Setting conditions for releasing money for which the State is naturally eligible is not correct,” he said. Mr. Balagopal also underscored the need for flexibility in the implementation of schemes. ‘One-size-fits-all’ policies for scheme implementation in all States is impractical. On Tamil Nadu moving the Supreme Court over stoppage of education funds, Mr. Balagopal said the Kerala government is trying be cooperative in its relations with the Centre in administrative matters. He pointed out that Kerala was the first State to approach the Supreme Court (over the Centre slashing its borrowing limit) and the Chief Minister and the Minister had also staged a protest in New Delhi against the discrimination shown to the State.
