The State government has reportedly taken a decision to prioritise spending in view of its slashed borrowing limit.
The decision was taken at a meeting convened by Chief Minister Pinarayi Vijayan here on Tuesday which was attended by Finance Minister K.N. Balagopal, Additional Chief Secretary (Finance) Bishwanath Sinha, and senior Finance department officials. Mr. Sinha reportedly presented an overview of the current situation of State finances at the meeting.
Following a communication from the Centre fixing the State’s open market borrowing limit at ₹15,390 crore, the State government had alleged that the limit has been drastically cut. The communication from the Centre, however, was not accompanied by a calculation sheet giving a detailed break-up of the borrowing ceiling, according to the State government.
Last week, the Finance department had written to the Centre seeking a clarification on the borrowing limit and requesting that the calculation sheet be released.
