Centre allows Kerala to borrow Rs 17,936 cr; state govt not happy

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Representative Image | File Photo: G Shivaprasad /Mathrubhumi

Thiruvananthapuram: The Centre has finalised the borrowing limit of Kerala till December 2022 at Rs 17,936 crore.

The borrowing limit was reduced by Rs 5,656 crore when compared to the corresponding period last year.

Earlier, the Centre had temporarily permitted borrowing of Rs 5,000 crore. However, now the Centre has finalised the limit.

If Gross State Domestic Product (GSDP) is considered Kerala can borrow Rs 32,425 crore. But the Centre had made it clear from the beginning that this amount will not be allowed. The finalisation comes amid this.

Meanwhile, the state government is not happy about the rationale of the Centre. According to insiders, the Centre did not consider the repayment. The borrowings of KIIFB is Rs 14,000 crore and the state government has repaid Rs 9,000 crore. But the repayment is not considered and only the borrowed amount is taken which is gross injustice, they claim.

Finance minister KN Balagopal in the Kerala Assembly had hit out against the Centre’s rationale.

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