Kerala seeks Rs 24,000 cr special package from Centre to address financial crisis ahead of Budget session

Kerala has sought a Rs 24,000 crore special package from the central government to tackle the economic crisis and recover from the recession. The state has also requested an increase in its borrowing limit to 3.5% without conditions.   

Thiruvananthapuram: Kerala has requested a special package of Rs 24,000 crore from the central government to address the economic crisis and recover from the recession. It has also asked for an increase in the borrowing limit to 3.5%, without any conditions, ahead of the budget. Kerala hopes that the upcoming budget will give special consideration to the Vizhinjam port project and the rehabilitation of Wayanad.

The Centre's budget is coming amid disputes in court regarding the reduction of the borrowing limit. Kerala has strongly protested against the central government's policy of including loans raised for implementing centrally sponsored schemes within the borrowing limit. 

Kerala has requested an increase in the borrowing limit to 3.5% for the next financial year, along with the continuation of the 1.5% allowance for gains in the energy sector. To overcome the economic downturn, Finance Minister K.N. Balagopal has submitted a proposal for a special package of Rs 24,000 crore to the Centre. Additionally, Kerala is seeking Rs 5,000 crore for the Vizhinjam Port project, including a non-repayment clause for the Viability Gap Funding (VGF).

Kerala anticipates special consideration in this year’s Union Budget for addressing climate change-related issues. The state has requested Rs 4,500 crore be set aside for these concerns. Additionally, Keralahopesl for an allocation of Rs 1,000 crore for addressing human-animal conflict areas. The state has also called for considerations regarding major infrastructure projects like the Silver Line and the Angamali-Sabari-Thalassery-Mysore rail lines, which aim to bring significant changes. 

Furthermore, Kerala has submitted a comprehensive package covering issues such as rice storage, the Supplyco deficit, the rubber price stabilization fund, and the resolution of pension distribution delays.