Published - December 24, 2025 08:21 pm IST - THIRUVANANTHAPURAM The State government has once again urged the Centre to restore several thousands of crores of rupees allegedly slashed from its borrowing limit, including ₹5,944 crore deducted from the limit for the last quarter of 2025-26, pointing out that the State is facing “serious fiscal challenges” arising from multiple shocks to State revenues and constraints on borrowing capacity. Kerala has sought, among other things, the restoration of ₹5,944 crore deducted from the borrowing limit reportedly citing off-Budget borrowings by special purpose vehicles (SPV), ₹965.16 crore cut in April 2025 to make up for a shortfall in the Integrated Goods and Services Tax (IGST) balance, and ₹3,323 crore cut in connection with the Guarantee Redemption Fund (GRF). The total amount that the State seeks to be restored comes to a little over ₹22,350 crore under various components.
