New Delhi: Kerala on Wednesday sought special financial assistance from the union government, citing a series of setbacks, including curbs on borrowing and the cessation of GST compensation.
This was among various demands raised during state Finance Minister KN Balagopal’s meeting with Union Finance Minister Nirmala Sitharaman in the national capital.
In a representation to the minister, Balagopal said effective measures could be initiated by the Union government, like an ad hoc borrowing increase of one percent above the celling equation for the 2023–24 fiscal, and also requested to extending the GST compensation period.
“Some kind of special financial assistance is also sought in the background of cessation of revenue deficit grant and the declining share of tax in the Finance Commission devolution,” it said. The Goods and Service Tax (GST) compensation ended last year.
Noting that fiscal constraints in 2023–24 will be more than that of previous years, Balagopal said there is a shortage of around Rs 8,400 crore in revenue deficit grants compared to the previous financial year. Besides, the state has asked the Centre to release pending funds under various schemes.
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