Kerala FM meets Sitharaman; apprises about state's fiscal challenges
GST
Dated:- 24-12-2025
PTI
New Delhi, Dec 24 (PTI) Kerala Finance Minister KN Balagopal on Wednesday apprised Union Finance Minister Nirmala Sitharaman about the state's fiscal challenges and urged her to restore the borrowing limits that have been cut.
The Left Democratic Front (LDF)-ruled Kerala has been constantly flagging issues related to lower borrowing limits and overall fiscal approach of the BJP-led Centre towards the state.
During a meeting with Sitharaman, Balagopal raised various issues, including that the state is currently experiencing serious fiscal challenges, arising from multiple simultaneous shocks to state revenues and constraints on borro
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tude and timing of the deduction have resulted in severe fiscal stress for the state.
“The combined impact of GST rate rationalisation, adverse trade developments has created an unprecedented fiscal squeeze that threatens the state's ability to maintain essential services and honour pre-committed liabilities,” the minister said.
The recent GST (Goods and Services Tax) rate rationalisation has resulted in revenue losses for Kerala.
“The state, being heavily dependent on GST revenues, faces an annual shortfall of approximately Rs 8,000 crore during the financial year 2025-26. This reduction substantially narrows Kerala's fiscal space to sustain essential public services, welfare schemes and committed developmental expenditure,” as per the
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