Centre Sanctions Rs 21,253 Crore Borrowing for Kerala to Ease Economic Crisis

Kerala, May 27 (KNN) In a move to alleviate Kerala's economic woes, the Central government has sanctioned borrowings of up to Rs 21,253 crore for the state until December 2024.

The financial assistance, announced by Union Minister Rajeev Chandrasekhar on X, aims to address Kerala's pressing economic challenges, including delayed salary payments for government employees and stalled development projects.

Chandrasekhar stated that the substantial funds are being provided under the leadership of Prime Minister Narendra Modi to assist Kerala during its economic crisis.

However, he urged Chief Minister Pinarayi Vijayan to ensure the judicious utilisation of the funds for the welfare of the people, without any instances of leakages or corruption.

The Union Minister highlighted several key initiatives that the Kerala government should prioritise using the allocated funds.

These include clearing pending salaries and pensions for government employees, including those of the Kerala State Road Transport Corporation (KSRTC), executing the Coastal Protection and Mini Harbour Project, completing the ongoing recruitment process for Coastal Police Officers, and accelerating pending development projects, particularly in Thiruvananthapuram.

The financial aid comes amidst concerns raised by Kerala Finance Minister KN Balagopal about a reduction in the percentage of funds the state is receiving from the Centre.

Balagopal stated that while the Union government's tax collection has increased 11-fold, the increase in tax devolution to Kerala is only 8.8 times, leading to a shortage of funds for social schemes and timely pension disbursements.

The Central government's intervention aims to provide much-needed relief to Kerala, enabling the state to address its economic challenges and prioritise the welfare of its citizens through the implementation of crucial development projects and social welfare measures.

(KNN Bureau)