Kerala's economic crisis: State finance minister holds discussion with Nirmala Sitharaman demanding intervention

NEW DELHI: Discussion in Delhi demanding the central government's immediate intervention to resolve Kerala's financial crisis. Yesterday, Finance Minister K.N. Balagopal met Union Finance Minister Nirmala Sitharaman. Balagopal responded that he brought three issues, including the borrowing limit, to the attention of the Union Minister.

"The Centre was informed that urgent measures are essential to maintain Kerala's financial stability. The Union Minister replied that the demands would be considered. At the same time, the discrimination shown to Kerala in receiving foreign funds was not raised yesterday. The matter will be brought to Centre's attention at the next opportunity".

Following demands were raised:

1. The Rs 1877.57 crore cut from the state's borrowing limit in the last financial year should be allocated for the year 2025-26

2. The Rs 3323 crore cut from the borrowing limit for the financial year 2025-26 should be restored

3. The provisions of the Guarantee Redemption Fund should be avoided from affecting the borrowing limit.