Economic crisis; the central government denied the state's borrowing request.

By: 600011 On: Sep 14, 2023, 5:41 PM

The national government rejected Kerala's request for more borrowing, citing the financial crisis as the reason. The activity was found to be in violation of the Financial Responsibility Act. The finance department is concerned about the upcoming expenses as a result of this.

Finance Minister KN Balagopal presented the demand in person to Union Finance Minister Nirmala Sitharaman. Last month, the Additional Chief Secretary of Finance put pressure on the Union Finance Ministry in Delhi. The Union Finance Ministry stressed that borrowing can only be authorized if the Finance Commission directs it. Only roughly 800 crore rupees are available for borrowing by the state.