Thiruvananthapuram: Finance minister KN Balagopal will present the state budget on Friday.
The Centre in the Union Budget did not sanction any of the proposals made by the state to increase revenue.
As a result, the state is devoid of any new source of revenue. Therefore, the government is unlikely to step away from increasing all possible taxes.
The government presented Economic Review 2022 in the Assembly on Thursday. Balagopal said the Centre's imposition of cuts in the borrowing limit of the states would adversely impact Kerala's economy.
Speaking at the state Assembly, he said the Union government adopted a "wrong policy" to reduce the state's borrowing capacity after including the loans taken by the special purpose vehicles like Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pension Limited (KSSPL) within the state government's overall borrowing limit.
The minister added that besides availing loans, the government is making all efforts to find funds for the development projects by increasing tax and non-tax revenue, reducing unwanted expenses and mobilising maximum resources.
(With inputs from PTI)