Archive · 11 Jan 2026
States seek fiscal relief from Centre
Two states in India, Kerala and Tamil Nadu, are asking the central government for financial help.
Kerala needs money because of borrowing limits and tax changes.
Tamil Nadu is worried about jobs and money from taxes.
Both states say the central government isn't giving them enough money for important projects like schools, hospitals, and roads.
They also want help with problems like trade issues with the US and taking care of their people.
The central government needs to decide how to help them.
Kerala and Tamil Nadu seek fiscal relief from the Centre due to various financial pressures.
Kerala faces a resource gap of over Rs 21,000 crore due to borrowing constraints and GST issues.
Tamil Nadu warns of 30 lakh jobs at risk due to US tariff hikes affecting its export-driven economy.
Both states highlight unresolved Centre-state accounting issues and delayed project funding.
Tamil Nadu requests immediate releases for key welfare programmes and infrastructure projects.
- Who
- Kerala and Tamil Nadu governments
- What
- Requested fiscal relief from the Centre
- When
- Pre-Union Budget consultation
- Where
- India
- Why
- Due to fiscal pressures, GST revenue losses, and external trade shocks
- States
- Kerala, Tamil Nadu
- Kerala's Requested Package
- Rs 21,000 crore
- Tamil Nadu's GST Revenue Loss
- Rs 10,000 crore
- Tamil Nadu's Additional Burden from Schemes
- Rs 5,000 crore
- Tamil Nadu's Jal Jeevan Mission Request
- Rs 3,112 crore
- Tamil Nadu's Hogenakkal Project Request
- Rs 2,283 crore
- Tamil Nadu's Samagra Shiksha Scheme Request
- Rs 3,548 crore
- Tamil Nadu's Jobs at Risk
- 30 lakh
Sources
Kerala seeks special fiscal package from Centre, flags GST shock and borrowing curbs - Telegraph India
Budget 2026: In pre budget meet with Sitharaman, states raise revenue loss after GST cuts
Amid Trump tariff worries, a Tamil Nadu caution: 30 lakh jobs at risk
Kerala CM calls one-day ‘Satyagraha’ against Centre over ‘financial strangulation’