Palakkad: Finance Minister KN Balagopal has warned that the state is heading towards debt crisis. The finance minister argued that the financial crisis in the state is intensifying and the reason for this is that the Center has cut the IGST allocation to the state last month. The Finance Minister said that a letter has been sent to the Center in this regard. He was meeting the media during the Navakerala Sadas at Palakkad.
The minister said that as per the accounts of IGST, there has been a decrease in the amount which is to be paid to the states. There was a shortfall of Rs 332 crore in one month. Kerala has intervened in the matter. It is the amount that Kerala deserved that has been deducted. He said that this will cause a severe crisis.
The restrictions on treasuries have been imposed since yesterday, indicating that the financial crisis is severe in Kerala. It was stated that the restriction was due to lack of money for daily expenses and to pay salaries of government employees. The new restrictions are a huge blow for the people in Kerala when the state government is looting money from the treasury for extravagant expenditure. To divert the attention of the people from this, the state government has now come with this new accusation on the Center.