Finance Minister K.N. Balagopal on Friday accused the Centre of launching an intensified offensive against the State on the fiscal front. Adverse Central policies will deprive the State of ₹57,400 crore in Central transfers and loan approvals in the current fiscal, Mr. Balagopal said in a statement on the State’s financial status.
While the borrowing limit has been whittled down by ₹19,000 crore, the Revenue Deficit Grant, compared to last year, is down by ₹8,400 crore. The State also stands deprived of GST compensation to the tune of ₹12,000 crore. With its tax share from the divisible pool down from 3.58% to 1.925% under the 15th Finance Commission, the State also loses another ₹18,000 crore, according to him.
Overall, Kerala has experienced a reduction of ₹1.07 lakh crore in its gross borrowing limit alone since 2017. All this works against the best interests of the State, he said.
