Satheesan seeks state-specific premiums for Ayushman scheme, curbs on offshore mining
Source Entity
The Indian Express

Kerala has formally requested a shift toward fiscal federalism at the 31st Southern Zonal Council meeting. The state is pushing for customized premiums for the Ayushman Bharat scheme and tighter regulations on offshore mining.
Kerala Advocates for Fiscal Federalism at Southern Zonal Council
At the 31st Southern Zonal Council meeting held in Mahabalipuram, Kerala presented a robust case for reforming the financial architecture of centrally sponsored schemes. Led by V.D. Satheesan, the state delegation utilized this inter-state forum to emphasize the necessity of fiscal federalism, a concept that advocates for greater financial autonomy and responsiveness in the distribution of federal funds to states.
Reforming the Ayushman Bharat Framework
A primary point of contention raised by the Kerala government involves the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). Currently, the program utilizes a uniform national premium structure that fails to account for the varying healthcare costs and socioeconomic landscapes across different Indian states. Kerala is proposing a shift to state-specific premiums, arguing that a 'one-size-fits-all' model ignores the unique health indicators and service delivery expenditures inherent to their specific region.
Aligning Data and Expenditure
Beyond premium restructuring, Kerala has called for the alignment of AB-PMJAY eligibility criteria with the National Food Security Act (NFSA) database. By harmonizing these data sets, the state aims to reduce bureaucratic redundancies and ensure that the most vulnerable populations are accurately identified. Furthermore, the state has requested a revision of the Central share to more accurately reflect the actual expenditure incurred on families covered under these schemes, rather than relying on standardized projections that often fall short of real-world costs.
Addressing Offshore Mining Concerns
The discussion also extended to the regulation of offshore mining, with Kerala pushing for stricter oversight. This reflects the state's broader commitment to balancing industrial development with environmental preservation. By raising this at a regional forum, Kerala is signaling that environmental policy, much like fiscal policy, requires a nuanced approach that considers the ecological sensitivity of coastal states.
Historical Context and Political Continuity
It is noteworthy that this stance represents a continuity in Kerala's policy trajectory. The concerns regarding fiscal federalism and the burden of centrally sponsored schemes have been a consistent theme across different political administrations in the state, including previous CPI(M)-led regimes. This consistency underscores the systemic nature of the challenges faced by states when balancing local budgetary needs with national mandates.
Future Implications for Federal Relations
The demands presented by Kerala are likely to influence ongoing dialogues between the Union and the States regarding the devolution of funds. If these requests for flexibility and site-specific funding models are adopted, they could set a precedent for other states seeking to optimize their healthcare and environmental policies. Moving forward, the success of such initiatives will depend on the Centre's willingness to decentralize aspects of program management to accommodate state-specific realities.