Kerala urges Centre to permit Rs 7,900 cr addl borrowing this fiscal; cites expenses ahead of Onam
GST
Dated:- 11-8-2025
PTI
New Delhi, Aug 11 (PTI) Kerala on Monday urged the Centre to allow the state to borrow an additional Rs 7,900 crore as well as restore around Rs 4,300 crore that has been deducted in relation to certain adjustments.
The state, which saw its debt-GSDP (Gross State Domestic Product) ratio decline to 34.13 per cent in 2024-25 from 38.47 per cent in 2020-21, has sought the amounts citing the significant impact of the deductions on its fiscal health and its ability to meet essential expenditures especially in view of huge cash outflow in connection with the upcoming Onam festival.
Kerala Finance Minister K
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hways.
“We request to allow the state to borrow Rs 6,000 crore in the current financial year without any conditions, over and above the Net Borrowing Ceiling fixed by the Government of India for 2025-26,” the memorandum said.
Further, Balagopal has sought permission for raising Rs 1,877.57 crore through Open Market Borrowing (OMB) and cited the amount pertained to variation in the GSDP.
Among other demands, the state has requested the Union government to urgently restore Rs 3,323 crore which was deducted in connection with non-contribution to the Guarantee Redemption Fund (GRF).
States are required to make contributions to the GRF which is also a parameter for determining states' borrowing ceilings. As per the memorandum, Rs 965.16
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