Finance Minister KN Balagopal
Finance Minister KN Balagopal said on Thursday that the Center has reduced the state borrowing limit by ₹5,900 crore in the current quarter.
He said the Center had issued a letter on Wednesday stating that ₹5,900 crore has been cut from the borrowing limit in the current quarter. “This is the last year of the Left Front government and the last quarter before the Assembly elections. The cut in the loan limit will have a significant impact on the state,” he said.
Mr. Balagopal said the state government has been able to sail through with its plans despite the ceiling on the borrowing limit imposed by the Center over the past four-and-a-half years. The annual expenditure in 2024-25 was approximately ₹1.75 crore. “We expect this fiscal to touch 2 lakh crore,” he said.
He said the Viksit Bharat – Rozgar and Ajeevika Mission Guarantee (Gramin) or the VB-G RAM G Bill replacing the Mahatma Gandhi Rural Employment Guarantee Act (MGNREGA) would adversely affect the state. Last year, about 13.7 million families joined the program and the total enrollment was about 22 million, he said.
Mr. Balagopal said the bill would have far-reaching consequences as it would lead to loss of jobs for millions of people not only in Kerala but across the country. If the Center abdicated its responsibility, the financial burden related to the scheme would fall on the state government, he said. He added that the benefits of GST rationalization need to be passed on to the consumers and the Center must compensate the states for the annual revenue loss.
On the electoral failure of the Left Democratic Front, Mr. Balagopal said the front would “reach out to the public and make the required changes” ahead of the upcoming assembly elections.
Published – 18 Dec 2025 20:15 IST
