Kerala should be considered in central budget: Crucial discussion in Delhi today

THIRUVANANTHAPURAM: Finance Minister KN Balagopal will hold talks with Union Finance Minister Nirmala Sitharaman in Delhi today, seeking positive action on the economic crisis in Kerala. This comes ahead of the Union Budget being presented on February 1. Balagopal will also submit a memorandum with various demands.

The state's financial distress is caused by the frequent changes in norms and massive cuts in Kerala's borrowing limit. GST reforms, the expansion of cess, changes in the recommendations of the Finance Commission and the introduction of new conditions in central grants are a setback for Kerala. The state should be shown a sympathetic and practical approach in these matters. Balagopal said that the discussion for Kerala will be based on this.

Demands such as fund for Vizhinjam port development, interest-free viability gap fund for the construction of the new phase, package for railway development in the state, and setting the support price of rubber at Rs. 250 with Rs 50 central assistance will also be raised. This time, the state budget is on the 29th as the state is going to hold assembly elections. The state budget is usually presented after the Union Budget is presented, including the central share for the state. This is the practice that is being broken this time.

Kerala will also raise the issue of a review of the central government's decision to cut the borrowing limit by Rs 5,900 crore for the last three months of the current financial year. This year, a cut of about Rs 17,000 crore has been made. This is the first time in five years that borrowing has been cut by more than Rs 1 lakh crore. The state's own annual income is currently Rs 1 lakh crore. The state is carrying out public welfare programs without any hindrance despite the central government's action due to this achievement, Balagopal said.