THIRUVANANTHAPURAM: The state government has decided to borrow Rs 1130 crore, which is the the remaining amount according to the borrowing limit imposed by the Centre, immediatly. No more borrowing can be done this financial year to face the financial crisis.

The state government has to get Rs 4065 crore from the center for the modernization of the power sector. However, there are concerns that the amount will be withheld as the state was lagging behind in implementing smart meters. The state is in severe financial crisis.

Today, the Supreme Court is considering the petition filed by Kerala questioning the cut in the loan limit. The reduction in the loan amount came when the loans taken for KIIFB and the Welfare Pension Company were included in the public debt. The instructions given by the Union Finance Ministry on March 27 and August 11 in this regard and the fourth section of the Financial Responsibility Budget Management Act of 2003 are being questioned in the court. It has also been pointed out in the petition that the state urgently needs Rs 26,226 crore to overcome the financial crisis caused by these.