THIRUVANANTHAPURAM: In the wake of the deepening financial crisis, the Centre has blocked the state's move to borrow Rs 4,000 crore from the treasury reserves as well. It was notified last day.

Ten thousand crores could have been taken this financial year. 4000 crore was taken at the beginning of the financial year. The Centre is of the view that the three-year average has exceeded the limit. The Centre has blocked the state's move to take a loan citing that it has taken 13,000 crores in 2021. The higher amount was taken that day in the context of the implementation of salary reform.

Only Rs 1,000 crore is left to be borrowed from outside as per the current terms. The government's calculation was that treasury mobilization would help to overcome this crisis, and that is what has gone awry. Now the hope is that Kerala will get Rs 4065 crore based on the modernization of the power sector. However, that will not be enough to help meet both ends.

As the budget is about to be presented, the financial situation of the state is tight like never before. The Treasury has been in overdraft since the beginning of the new year and can take overdrafts up to 1644 crores. If the overdraft is not cleared within two weeks, the salary disbursement will be in crisis.

Since 2017, the treasury reserve has been linked to the credit limit. The limit was initially based on a one-year loan, which was later averaged over three years. Last year the state took a loan of 9000 crores and this year only 6000 crores. The state has now decided to avail the benefit of the balance which could have been withdrawn in the last two years, but the Centre says that that benefit can be availed only from the next year.

Crisis despite achieving what is available: Finance Minister

• After the pre-Budget estimate, the Finance Minister said that the revenue available to the state has been fully achieved, yet the crisis is not over.
• 72% of the total expenditure is found by the state. The total expenditure of the state is 176000 crores
• In addition to the loan of 35,000 crores, one and a half lakh crores have to be found. Of this, 57,000 crores is deducted citing multiple reasons
• The project cost is 38000 crores. Only 53% are completed. 19,000 crore is required to complete the remaining project

Accumulating liabilities

(Amount in Crores)

# Dues of dearness allowance of employees and pensioners...................................12696.13

# Salary Pension Arrears.......................................................................................................... 6790

Health Security Pension.......................................................................................................... 732

Dues of Employment Guarantee.......................................................................................... 97

Paddy procurement arrears................................................................................................... 673

Other Benefits............................................................................................................................. 3197

Welfare Pension.........................................................................................................................3600

Project cost.................................................................................................................................. 19000

Total............................................................................................................................................... 46785