Bringing temporary relief to Kerala, the Centre on Friday gave permission to the State to borrow ₹5,000 crore from the market on an ad hoc basis.
The State had been in talks with the Centre after the latter had put on hold the permission for market borrowings in the first quarter of the 2022-23 fiscal. The amount will be adjusted when the State's borrowing schedule gets finalised in due course.
Meanwhile, the Centre's stand on off-budget borrowings is likely to prove critical for the Kerala Infrastructure Investment Fund Board (KIIFB).
