Kerala CM to lead protest against Centre’s financial discrimination

Key Highlights

• According to the state government, the union Government has drastically reduced Kerala’s permissible borrowing limits, cutting nearly ₹17,000 crore during the current financial year, including a ₹5,900 crore reduction in the final three months.
• The government maintains that these curbs have created an artificial financial crisis and crippled routine governance.
• The state has further accused the Centre of denying permission to raise loans amounting to Rs 3,300 crore, citing technical issues related to guarantee deposits.
• It has also alleged that the Centre has withheld ₹965 crore in Integrated GST (IGST) settlement dues, despite repeated requests for their release.
• In addition, a loan proposal of around ₹6,000 crore, required to meet expenses for land acquisition for national highway projects, is still pending with the union Government, the LDF said.