The central government has rejected Kerala’s demand for immediate permission to borrow Rs 9,000 crore. The state had taken the entire advance loan amount of Rs 3000 crore sanctioned earlier. Apart from that, the Center has come up with a new loan demand.
More than 15,000 government employees are retiring this month, and it requires about 9,000 crores to pay the retirement benefits to so many people. This year, the state has been allowed to borrow Rs 37,512 crore, but the center has not yet said how much debt can be taken in the first nine months. Without this, the state cannot borrow.
A 3000 crore loan was recently sanctioned by the Centre. 3000 crore was allowed to be borrowed from the credit limit. After that, Kerala has come forward with the demand to give immediate permission to take a loan of 9000 crores.
The state has taken the entire advance loan amount of Rs 3000 crore sanctioned earlier. Six months welfare pension is arrears. The finance department is trying to pay one month’s dues next week. 900 crore is needed for this. We have to find money to pay salary and pension at the beginning of next month. This is why Kerala has sent a letter to the Center for urgent borrowing.
