Kerala has been facing a liquidity shortage due to the borrowing cap imposed by the Centre for 2022-23 and 2023-24
THIRUVANANTHAPURAM: Kerala is pinning its hopes on the forthcoming Union Budget, to be presented by Finance Minister Nirmala Sitharaman on July 23, to help address its financial crisis. The state anticipates that the changed political scenario in the country may lead the Centre to announce more welfare schemes in the budget.
The office of the State Finance Minister stated that at the pre-budget meeting called by Sitharaman, Finance Minister K.N. Balagopal requested a special economic package of Rs24,000 crore for two years from 2024-25 to ease the state’s liquidity crunch.
Balagopal is understood to have convinced the Union Minister that Kerala has been facing a liquidity shortage due to the borrowing cap imposed by the Centre for 2022-23 and 2023-24.
Another key demand from the state is Rs5,000 crore in special assistance for the Vizhinjam International Seaport, which is expected to commence commercial operations soon.
Additionally, Balagopal urged the Finance Minister to grant unconditional permission to borrow Rs6,000 crore in the current financial year to repay loans taken by the state for land acquisition for the National Highway project. He argued that the Rs5,580 crore spent by the state for this purpose should be considered additional expenditure for highway development and, therefore, should be reimbursed.
Kerala also demanded that the support price for rubber be raised to Rs 250 per kg to support the struggling rubber farming sector.
The state reiterated its request for speedy clearance of the semi-high-speed rail project SilverLine, as well as the survey and DPR preparation for the Thalassery-Mysuru and Nilambur-Nanjagud railway lines. Additionally, the state requested more express and passenger trains.
