Thiruvananthapuram: The Kerala Government has placed a new request before the Central Government to tide over the acute financial crisis it is facing. Kerala has now urged the Centre to exempt the amount repaid by the state for loans availed by KIIFB (Kerala Infrastructure Investment Fund Board) while granting credit.)
According to Kerala, it would be able to avail an additional Rs 2,000 crore as loan during the current financial year if the Centre approves this request.
In March - the last month of the financial year - the state urgently needs around Rs 22,000 crore to meet various expenses such as salaries and pensions. In order to raise this amount, Kerala has been implementing measures like stringent treasury restrictions, directing government departments to transfer money parked in bank accounts to the treasury and reducing expenditure.
However, the state has now realised that these measures would be insufficient to find the necessary money and has approached the Centre with the new move to avail an additional loan of Rs 2,000 crore.
According to Kerala Government officials, the state's financial woes aggravated after the Centre included the loans availed by KIIFB and the pension company formed by Kerala to facilitate smooth disbursal of welfare pensions in the state's loan account. Consequently, the Centre reduced the amount of credit which could be availed by Kerala. As per the state's latest plea, the amount repaid for KIIFB loan should be exempted and Kerala allowed a credit of an equal figure.
Meanwhile, Kerala announced that it would avail a loan of Rs 1,000 crore on coming Tuesday. That would leave a mere Rs 450 crore in the credit account of the state this financial year.
State Government officials pointed out that in the event of the Centre rejecting the proposal to adjust the KIIFB loan, alternative measures had to be sought. The Finance Department would launch discussions in this regard next week, they added.
