Thiruvananthapuram: Kerala has received Union government’s approval to borrow ₹23,000 crore from the open market until December this year. This is lower than last year. Of this, ₹2,800 crore will be borrowed on Tuesday itself, ahead of the new government assuming office. This is part of preparations for welfare pension, salary, and pension payments this month. The severe and continuing financial crisis is expected to pose a major challenge for the new government in the initial months.

Last year, until December, permission was granted to borrow ₹29,500 crore. This year, there is a reduction of around ₹6,000 crore. The Centre has sought an explanation regarding the figures. Before final approval, temporary permission was granted last month to borrow ₹4,700 crore. Including that, a total of ₹23,000 crore has now been permitted.

The welfare pension, proposed to be increased to ₹3,000, remains a promise. If implemented, it would require ₹1,680 crore per month.