The Centre will exclude ₹3,140.70 crore from the State’s borrowing limit for the current fiscal. However, Finance department sources said this offered only a temporary relief as the amount would be deducted in two equal instalments in the coming two fiscals.
Minister of State for External Affairs V. Muraleedharan, in a Facebook post, pointed out that the measure was intended as a “temporary relaxation” in the repayment of off-budget borrowings.
The ₹3,140.70 crore constitutes the current year’s instalment of the net off-budget borrowing of ₹12,562.80 crore made by Kerala in the 2021-22 fiscal which is being deducted from the borrowing limit in four instalments. Kerala had repeatedly objected to the deduction terming it unfair.
