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Centre sanctions Rs 21,253 crore borrowing limit for Kerala amid economic crisis

As Kerala faces economic crisis, Union Minister of State for Electronics and Information Technology Chandrasekhar announced a sanctioned borrowing limit of Rs. 21,253. He also announced a Rs 200 crore project under the Urban Flood Mitigation Programme for Thiruvananthapuram.

Edited By: Shubham Bajpai New Delhi Published on: May 26, 2024 19:20 IST
Union Minister Rajeev Chandrasekhar
Image Source : PTI Union Minister Rajeev Chandrasekhar

Union Minister Rajeev Chandrasekhar on Sunday took to social media platform X to announce financial support from the Centre to Kerala. Talking to X, Minister of State for Electronics and Information Technology Chandrasekhar said that Prime Minister Narendra Modi has come forward to assist Kerala in a bid to alleviate the state from the economic crisis as the Centre has sanctioned borrowings up to Rs 21,253 crores.

He said, “PM Narendra Modiji’s govt steps up to assist Kerala's economic crisis. Government of India sanctions borrowings up to Rs 21,253 crores till December 2024....."

The latest development comes as Kerala grapples with economic challenges, including delay in paying salaries and pensions and financing stalled development projects. The fund will prove to be crucial for state’s pressing economic needs.

In his post, Chandrasekhar revealed that the central government has sanctioned borrowings of up to Rs 21,253 crores for Kerala until December 2024.

Union Minister Chandrasekhar urges CM Vijayan to utilise funds for welface of people

Emphasising the need for efficient and transparent use of the sanctioned limit, Minister Chandrasekhar urged Kerala Chief Minister Pinarayi Vijayan to ensure that the funds are utilised for the welfare of the people, without any instances of leakages or corruption.

"I urge @pinarayivijayan to use funds properly for the welfare of the people of Kerala, without any leakages & corruption," the Minister added.

Minister Chandrasekhar also called upon the Kerala government to take immediate action on key initiatives to address the state's economic challenges effectively.

  • Payment of salaries and pensions for government employees, including those of Kerala State Road Transport Corporation (KSRTC) employees, who have been facing financial hardships due to delayed payments.
  • Execution of the Coastal Protection and the Mini Harbour Project, vital infrastructure projects aimed at safeguarding coastal areas and promoting maritime activities.
  • Completion of the ongoing recruitment process for the Coastal Police Officers (CPO), ensuring strong coastal security measures.
  • Completion of pending development projects in Thiruvananthapuram.

Kerala government had accused centre of reducing funds

Earlier, Kerala Finance Minister KN Balagopal had expressed concerns that there has been a reduction in the percentage of funds that the southern state is getting from the Centre while the funds collected by the centre have increased.

"The funds collected by the Union (government) increased 11 times during this period but the increase in tax to Kerala is only 8.8 times which means there is a sharp decline. So the reduction is huge and that is why states like Kerala, Punjab, Karnataka, and West Bengal are raising this issue," Balagopal said.

Kerala Finance Minister had further stated that the state government was facing a shortage of funds to meet the expenditure for its social schemes."We are facing the problem of giving minimum necessary things as well. We have to give pensions to 62 lakh families who were entitled to one. However, the release of these pensions are getting delayed because of lack of payments from the Union," he added.

Additional Rs 200 crore project for Urban Flood Mitigation programme

Meanwhile, Chandrasekhar also revealed the allocation of Rs 200 crore project for Thiruvananthapuram under the Urban Flood Mitigation Programme. 

He said, “In yet another gesture of extending helping hand to Kerala, PM Narendra Modi  ji’s Govt offers assistance for Rs 200 Cr project under the Urban Flood Mitigation Programme for Thiruvananthapuram.”

He again urged state CM Vijayan to submit a proposal for the same before the deadline, till end of May. “This programme aims to solve the problem of floods caused by heavy rains, which wreak havoc for the people of Thiruvananthapuram”, Rajeev Chandrasekhar added.

(With ANI Inputs)

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