New Delhi: The Left government of Kerala has once again appealed to the central government for financial assistance. Facing economic challenges attributed to previous Congress and Left administrations, Kerala has requested a special package of ₹24,000 crore to address its ongoing financial crisis.
Kerala Finance Minister K N Balagopal made this appeal during a pre-budget meeting in New Delhi on Saturday, June 22, 2024. This meeting, held with representatives from various states, precedes the presentation of the central government's full budget. Balagopal emphasized the need for a two-year financial aid package to help Kerala overcome its economic difficulties. Additionally, Kerala has requested ₹5,000 crore for the development of Vizhinjam Port.
Furthermore, Kerala has sought permission to increase its borrowing from the market to manage its expenses more effectively, attributing part of its financial woes to current borrowing constraints. Despite these new demands, the state received ₹21,253 crore in relief from the central government just a month ago, in May. This relief allows Kerala to borrow more until December 2024.
In a similar vein, Congress-ruled Karnataka has also sought a special package of ₹11,000 crore from the central government. Karnataka, which allocated ₹52,000 crore for election guarantees in the 2024-25 financial year, has requested ₹11,495 crore to ease financial pressures. The state has recently engaged an American agency to boost its revenue, costing ₹9.5 crore for six months of services.
The Karnataka government has previously utilized a ₹11,000 crore fund meant for SC/ST communities to mitigate financial strains caused by free schemes. Additionally, Karnataka is contemplating raising water and bus fares and has already increased the prices of petrol and diesel.
These financial appeals highlight the pressing economic challenges faced by both Kerala and Karnataka and their reliance on central government support to stabilize their economies.
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