Archive · 3 Jun 2025
Kerala Seeks Review of Borrowing Restrictions from Central Government
The Finance Minister of Kerala, KN Balagopal, has asked the central government to change some rules about how much money Kerala can borrow.
The state wants to get back money that was taken away because of changes in the state's economic numbers and new rules about a fund.
Kerala believes these rules are hurting its ability to pay for important projects.
The state is asking for help from the central government to ensure it can manage its money well and keep growing.
Kerala's Finance Minister urged the Union Finance Minister to reconsider borrowing restrictions.
The state seeks reversal of a Rs 1,877.57 crore deduction from its borrowing ceiling.
This deduction was due to adjustments based on revised GSDP figures from 2021-22.
Balagopal requested that the deducted amount be reallocated to FY 2025-26.
Kerala is also seeking restoration of Rs 3,323 crore deducted due to GRF guidelines.
- Who
- KN Balagopal, Finance Minister of Kerala
- What
- Kerala's Finance Minister requested a reconsideration of borrowing restrictions.
- When
- Recently
- Where
- Kerala
- Why
- To ensure the financial stability and development of Kerala.
- Finance Minister
- KN Balagopal
- Union Counterpart
- Nirmala Sitharaman
- Deduction Amount Sought to be Reversed
- Rs 1,877.57 crore
- Deduction Reason
- Adjustment based on GSDP
- Second Deduction Amount
- Rs 3,323 crore
- Second Deduction Reason
- Guarantee Redemption Fund (GRF) guidelines