Mon Mar 17 19:30:25 UTC 2025: **Kerala-Centre Relations Thaw as New Governor Fosters Cooperation**

**New Delhi, March 18, 2025** – A recent meeting between Kerala Chief Minister Pinarayi Vijayan and Union Finance Minister Nirmala Sitharaman signals a potential thaw in relations between the Kerala state government and the central government. The meeting, held at Kerala House in New Delhi on March 12th, was notable for the presence of Kerala’s new Governor, Rajendra Vishwanath Arlekar, who accompanied Vijayan. This is a significant shift, considering the openly strained relationship between the previous Governor, Arif Mohammed Khan, and the Kerala government.

Arlekar’s presence suggests a more cooperative approach. The day before the meeting, he hosted a dinner for Kerala’s MPs, expressing his support for the state government in presenting its concerns to the Centre. This contrasts sharply with Khan’s tenure, marked by public disagreements and accusations of interference in university administration. Khan even threatened to dismiss the Kerala Finance Minister, K.N. Balagopal.

The improved relationship comes at a crucial time for Kerala, which has long accused the central government of neglecting its financial needs and failing to adhere to principles of fiscal federalism. The state has even challenged the Centre in the Supreme Court. Past criticisms included insufficient aid for disaster relief following devastating landslides in 2024.

While Kerala’s Finance Minister recently declared the state has overcome severe fiscal constraints, the state government hopes the improved relationship will lead to increased financial support from the Centre, particularly regarding tax sharing and borrowing limits. They await the recommendations of the 16th Finance Commission, anticipating a more favorable outcome than under the 15th. The improved relations will be tested in the upcoming local body elections later this year and the Assembly elections in 2026.

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