In order to get through the severe financial crisis it is currently experiencing, the Kerala Government has made a new request to the Central Government. Kerala has now requested that the Center consider giving credit while exempting the state’s repayment of loans obtained by the KIIFB (Kerala Infrastructure Investment Fund Board).
Kerala claims that if the Centre grants its proposal, it will be able to borrow an additional Rs 2,000 crore during the current fiscal year.
The state urgently requires over Rs 22,000 crore in March, the final month of the fiscal year, to cover expenses like salaries and pensions.
The state has now realised that these actions won’t be enough to raise the required funds, therefore it has made a new move and asked the Centre to request an additional loan of Rs 2,000 crore.
Government officials in Kerala claim that the state’s financial difficulties worsened after the Center added loans obtained by KIIFB and the pension company Kerala established to enable the efficient disbursal of welfare pensions to the state’s loan account. As a result, Kerala could only use a smaller amount of credit, according to the Center. According to the state’s most recent argument, Kerala should be given a credit for an identical amount while the amount repaid for the KIIFB loan should be exempted.
Kerala said that it would take out a loan for Rs 1 billion on Tuesday. Only Rs 450 crore would be left in the state’s credit account for the current fiscal year.
Officials from the State Government made it clear that if the Centre rejected the request to modify the KIIFB loan, other options would need to be pursued. They said that the Finance Department would start talking about this next week.
Post Your Comments