Thiruvananthapuram: In a bid to alleviate the financial strain on the state and meet expenses related to the upcoming Onam season, Kerala Finance Minister K N Balagopal requested Union Finance Minister Nirmala Sitharaman for permission to borrow an additional Rs 6,000 crore this financial year.
The request was made during their meeting in New Delhi on Monday, where Balagopal emphasized the challenges being faced by the state in fulfilling its expenditure commitments due to shrinking fiscal space. The funds are expected to help mitigate these financial pressures.
Moreover, Balagopal informed Sitharaman that the Kerala government has already met 25% of the land acquisition cost for National Highway widening projects. This development is significant, as it demonstrates the state’s commitment to contributing towards national infrastructure development initiatives.
The Center will now review the request made by Balagopal and make a decision on whether or not to grant permission for additional borrowing. If approved, this move could help ensure that Kerala can adequately meet its financial obligations while also catering to the needs of its citizens during the Onam season.
As the situation unfolds, it remains to be seen if the Centre will agree to Kerala’s request and what impact this decision might have on the state’s Gross State Domestic Product (GSDP) and overall fiscal health. Stay tuned for updates as more information becomes available regarding this developing story.
