Cutting down Kerala's borrowing limit: CPI(M) says Centre trying to suffocate state with 'fiscal ban'

The CPI(M) state secretariat urged civil society organizations to raise protests against the "fiscal ban" imposed on Kerala. The Left party said the Union government had earlier given the permission to borrow Rs 32,442 crore but the borrowing limit has now been reduced to Rs 15,390 crore.

Thiruvananthapuram: The ruling CPI(M) on Saturday said the Union government's decision to cut down the borrowing limit of Kerala by half was an "attempt to suffocate the state" by any means necessary.

The CPI(M) state secretariat said the BJP-led Centre has been torpedoing Kerala's development initiatives by interfering in its financial matters.

The secretariat also urged civil society organizations to raise protests against the "fiscal ban" imposed on Kerala. The Left party said the Union government had earlier given the permission to borrow Rs 32,442 crore but the borrowing limit has now been reduced to Rs 15,390 crore.

Kerala Finance Minister K N Balagopal had on Friday said the central government has put the borrowing limit to Rs 15,390 crore, which is half of what Kerala is entitled to borrow.

"The Union government does not even accept the legislation on fiscal responsibilities. They have not yet revealed the reason behind the slashing of the borrowing limit," the statement said.

The CPI(M) said that for the past seven years, the Centre has been conducting "research on" methods to harass the Kerala government. The BJP-led government at the Centre has refused to honor the Constitution or democratic values, it said.

"The state government has been implementing welfare measures for the people of Kerala despite the financial crunches caused due to the policies of the Union government. They wanted to hamper the development and growth of the state," the party said. 

(With Inputs from PTI)