News8Plus-Realtime Updates On Breaking News & Headlines

Realtime Updates On Breaking News & Headlines

Kerala in dire financial straits: Minister seeks Sitharaman’s intervention

Thiruvananthapuram:Kerala Finance Minister KN Balagopal has written a letter to Union Finance Minister Nirmala Sitharaman, in search of pressing intervention by her within the backdrop of the grave monetary disaster that the state authorities is dealing with presently.

“The financial health of the state has been seriously affected by a reduction in the revenue deficit grant to the tune of around Rs. 7,000 crore this year and loss due to stoppage of GST compensation of around Rs. 12,000 crore. In addition, the Ministry of Finance has arbitrarily, in the name of off-budget borrowing, made a reduction of approximately Rs. 4,000 crore in the net borrowing limits of the state,” says Balagopal.

He factors out that, in all, the state authorities must cope with a discount of Rs 23,000 crore within the monetary assets obtainable to it for financing the finances within the present monetary 12 months.

“This poses a serious threat to the government in sustaining spending on welfare schemes for the poor, including housing, education and health among others. Unless the realities faced by the state, particularly given the fact that the state is struggling to emerge from the economic debilitation wrought by the Covid pandemic, are recognized by the Union Government, the safety of the socio-economic security system that the state has worked so hard to build over the last several decades will be in jeopardy,” says Balagopal.

He goes on to level out that the composition of the monetary liabilities of State Governments has modified considerably within the final 25 years. “The share of loans and advances from the Heart has declined from over 15.8 per cent of all state liabilities in 2005 to three per cent in 2020. Kerala is not any exception to this pattern. The excellent loans and advances from the Heart to Kerala as a share of state’s whole liabilities have lowered from 12.4 per cent in 2005 to three.3 per cent in 2020,” says Balagopal.

He additional factors out that over the past 5 years, among the actions of the Union Ministry of Finance whereas fixing the state’s internet grave borrowing ceilings has raised some considerations for the state governments and seeks the fast consideration of the Centre.

In keeping with these within the know of issues, if there may be not going to be a thoughtful method to the felt calls for and desires of the state almost about the fears and considerations of Balagopal, the approaching months might see the state reeling for need of funds .

Click Here To Join Our Telegram Channel

In case you have any considerations or complaints concerning this text, please tell us and the article will probably be eliminated quickly. 

Raise A Concern