THIRUVANANTHAPURAM: Kerala has sought the Central government’s support in implementing SilverLine and other innovative projects of the state. Finance Minister K N Balagopal raised the demand during the pre-budget consultation with Union Finance Minister Nirmala Sitharaman.
Balagopal asked the Centre to expedite requisite approvals for SilverLine. Another major demand raised by the state is to make the annual borrowing ceiling of the state “absolutely unconditional” and to bring it down gradually to 3 per cent in 2025-26 by effecting a reduction of 0.25 per cent each year. Also, the external borrowings from multilateral and bilateral agencies through the Department of Economic Affairs of the Union Government should be kept outside the state’s normal borrowing ceiling for the current financial year and next two years.
The state also requested the Centre to increase allocation under Centrally sponsored schemes to compensate for the steady decline in state’s share of devolution. It was requested to consider allowing the State Specific Grants recommended by the 15th Finance Commission. The commission’s recommendation was to sanction state specific grants amounting to `49,599 cr over the award period of the commission.
In the pandemic situation, Balagopal said, the state governments needed to adopt counter cyclical fiscal measures to put the economy on a robust recovery path. The state has already adopted expenditure rationalisation measures like freezing of dearness allowance and deferment of salary and pension revision arrears. The state hopes that a special assistance package will be announced in the Union budget for adequately supporting the counter cyclical measures taken by the state governments to stimulate economic recovery, he said.