Thiruvananthapuram: The financial crisis in Kerala continues to take a turn for the worse as only days remain for Finance Minister K. N. Balagopal to present the state budget on February 2. 

The state treasury has been in overdraft for five days now. Sources in the government say that the centre has now blocked the additional loan of Rs 2500 crore earlier agreed upon.

Last week, the Finance Department Principal Secretary Rabindra Kumar Agarwal requested the centre to release additional loans to the state. The finance ministry had agreed to a replacement borrowing (in lieu of repaid loans) of Rs 2500 crore. However, the ministry later decided not to disburse the amount.