Archive · 21 May 2025
Kerala: Centre Slashes IGST Share and Borrowing Limits
Kerala's Finance Minister, K.N. Balagopal, says the central government reduced the state's share of the Integrated Goods and Services Tax (IGST) by ₹956.16 crore.
He also said that the Centre cut ₹3,300 crore from the state's borrowing limit due to conditions related to a Guarantee Redemption Fund.
The minister argues the state's debt-to-income ratio is improving.
The state's debt-to-GSDP ratio has decreased since 2020-21.
He added that there have been no formal discussions on a new pay revision commission.
Kerala's Finance Department reported a ₹956.16 crore reduction in its IGST share.
The Centre reduced the borrowing limit by ₹3,300 crore.
The cut in borrowing was linked to the Guarantee Redemption Fund.
The state's debt-to-GSDP ratio decreased from 38.47% (2020-21) to 33.9% (2024-25).
Formal discussions on the pay revision commission have not yet been held.
- Who
- Kerala Finance Minister K.N. Balagopal.
- What
- Kerala's Finance Minister addressed reductions in IGST share and borrowing limits.
- When
- Statements were made on Wednesday, May 22, 2025.
- Where
- Kerala.
- Why
- To address financial impacts of the central government's actions and explain Kerala's financial position.
Kerala Government
Central Government
IGST Share
Kerala Government
Kerala states the cuts impact its finances negatively.
Central Government
The central government reduced IGST shares.
Debt Situation
Kerala Government
Kerala argues the state's debt is improving.
Central Government
The Centre cut the state's borrowing limits.
- Finance Minister
- K. N. Balagopal
- IGST Reduction
- ₹956.16 crore
- Borrowing Limit Reduction
- ₹3,300 crore
- Debt-to-GSDP (2020-21)
- 38.47%
- Debt-to-GSDP (2024-25 projected)
- 33.9%
- Open Market Borrowing Limit (Apr-Dec 2025-26)
- ₹29,529 crore
