The Kerala government has found itself in a tight spot with the Centre yet to give permission for market borrowings in the current fiscal.
It is understood that the Centre has adopted a tough stand on off-Budget borrowings made through various government institutions and wants those to be factored in into the State's borrowing limit. The Centre has also reportedly sought a clarification from the State government regarding previous borrowings.
Finance department sources said the State government has taken up the matter with the Centre at multiple levels.
