THIRUVANANTHAPURAM: Due to the financial crisis, the state government has issued an order prohibiting the purchase of new vehicles and furniture for one year. All unnecessary expenses are prohibited, including trips and the beautification of offices. The order, which was put in place during the Covid period to combat the financial crisis, has been extended for a further year.

The government has also extended the deadline for granting administrative approval for last financial year's asset development scheme of MLAs till December 31. As per law, administrative approval for the asset development scheme should be granted in the respective financial year itself. Otherwise, it will be wasted. This was not possible last year due to heavy rains. Considering that, the government extended the deadline twice till September this year. The government has now further extended the deadline till December as it could not give administrative approval for the time being.

The Kerala Chief Secretary had told the High Court that the state was facing a serious financial crisis as it could not find money even for daily needs. The Chief Secretary made this disclosure in court in connection with the case about the stagnation of pension distribution in KSRTC. The High Court replied that the government should give priority to those who are suffering rather than the celebrations.

Later, the Chief Minister came out alleging that the state government was facing extreme attacks from the central government on the financial front. He also said that the state suffered a shortfall of Rs 57,400 crores in its revenue through this. The Chief Minister also announced that the state would file a case in the Supreme Court against the central government's financial neglect.

The Centre had allowed the state to avail loans up to Rs 21,852 crores till December this year. he state has already borrowed Rs 21,800 crore. It can now borrow only 52 crore till December. Economic experts suggest that urgent central assistance is the only way to overcome the crisis.

The Centre had reduced the borrowing limit by including the loans taken for KIIFB and welfare pension under the public debt. Kerala can borrow three percent of its total production. The crisis was exacerbated by the central government's denial of Rs 40,000 crore, including Rs 12,000 crore due to the suspension of GST compensation, Rs 8400 crore in revenue deficit grant, a reduction of Rs 14,000 crore in loans and a reduction of Rs 6,000 crore in central grants.