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Last Updated: February 02, 2023, 14:12 IST
Thiruvananthapuram, India
Balagopal additionally mentioned he himself despatched a letter to Union Finance Minister Nirmala Sitharaman however the Centre has made no change of their stand to date (Image: ANI)
“The cutting down of the borrowing capacity of states to three per cent from the previous five per cent will adversely impact the state’s economy,” Balagopal mentioned throughout Question Hour
Kerala Finance Minister KN Balagopal on Thursday mentioned the Centre’s imposition of cuts within the borrowing restrict of the states would adversely affect the southern state’s financial system, which is but to fully recuperate from the challenges because of the COVID-19 pandemic and back-to-back pure disasters.
The BJP-led union authorities adopted a “improper coverage” to reduce the state’s borrowing capacity after including the loans taken by the special purpose vehicles like Kerala Infrastructure Investment Fund Board and Kerala Social Security Pension Limited within the state government’s overall borrowing limit, he told the state Assembly.
“The cutting down of the borrowing capacity of states to three per cent from the previous five per cent will adversely impact the state’s economy,” Balagopal mentioned throughout Question Hour.
Despite repeated requests to revive the earlier borrowing restrict of the states and to keep away from the inclusion of the loans taken by the KIIFB and KSSPL within the state’s general borrowing, the union authorities had not taken any beneficial step, he mentioned.
Chief Minister Pinarayi Vijayan had despatched a letter to Prime Minister Narendra Modi with the state’s request on this regard, he mentioned.
Balagopal additionally mentioned he himself despatched a letter to Union Finance Minister Nirmala Sitharaman however the Centre has made no change of their stand to date.
Noting that the state funds is ready primarily based on the borrowing restrict being fastened by the Finance Commission, the Minister mentioned loans taken on this method are primarily used for infrastructure improvement.
Imposing cuts within the borrowing restrict of the state after the Assembly handed the funds would derail the infrastructure improvement of the state and trigger delay within the completion of the continuing initiatives, he defined.
Besides availing loans, the state authorities is making all efforts to search out funds for the event initiatives by growing tax and non-tax income, decreasing undesirable bills and mobilising most assets, the finance minister added.
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(This story has not been edited by News18 employees and is revealed from a syndicated information company feed)
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