Financial crisis; Kerala seeks Rs 6835 crore assistance from Centre, minister Balagopal visits union finance minister in Delhi

THIRUVANANTHAPURAM: Finance Minister KN Balagopal has reached Delhi to seek centre’s help due to severe financial crisis in the state. He met the Union Finance Minister Nirmala Sitharaman and requested her to provide emergency assistance of Rs 6835 crore and permission to borrow another Rs 4060 crore. The minister presented the financial crisis faced by the state before the Centre, and also requested to relax the criteria for determining the loan limit.

With the Centre changing the criteria for granting permission to borrow money, the state was unable to borrow more. Kerala Kaumudi had reported the other day that even the distribution of social welfare pension has been delayed due to this.

Since the loans taken by KIIFB and Social Security pension limited are not directly taken by the government, they should not be included in the public debt of the state and the loan sanction limit should be increased as the other debt has decreased to Rs 7813.06 crore. Also, in view of the good performance in the energy sector, additional borrowing of Rs 4060 crore should be allowed, demanded minister Balagopal.

The minister also requested to immediately sanction Rs 6835 crore to the state which includes several other funds.

GST

Balagopal has requested to grant Rs 1548 crore which is to be received as GST compensation and also that the GST compensation be allowed for another five years.

If the Centre continues to impose strict restrictions, the financial crisis in the state will worsen in the coming months.

Loan sanctioned till December - Rs 17936 crore

So far taken – Rs 13936 crore

Remaining – Rs 4000 crore

What Kerala asked the Centre

Emergency Assistance - Rs 6835 crore

Permission to take Rs 4060 crore loan