Thiruvananthapuram: As the state continues to reel under severe financial stress, the Centre approved Rs 37,500 crore in borrowings for the current fiscal year. 

However, the borrowings made by the Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pension Ltd. (KSSPL) in the previous fiscal year will fall within the limit set for the year. Additionally, nearly Rs 12,000 crores will likely be reduced for loans taken for disbursing welfare pensions and the Employee Provident Fund (EPF). 

The centre approved Rs 37,500 crore in borrowings by considering 3 percent of the gross state domestic product (GSDP).