THIRUVANANTHAPURAM: In his first meeting with the Prime Minister and the Union finance minister after assuming office, Chief Minister V D Satheesan on Tuesday sought the Centre’s support in implementing the Kerala’s key development projects. Both Narendra Modi and Nirmala Sitharaman responded positively, Satheesan told reporters after the meetings in New Delhi.
Satheesan said he briefed Modi and Sitharaman on the state’s key challenges and priorities. The government will next submit detailed proposals to the respective ministries. The government will also pursue all funds legitimately due from the Centre, he said.
On open market borrowing, the chief minister said he informed the PM and the FM that Kerala’s ceiling stands at 3.5% of GSDP of which 0.5% is tied with power sector reforms. The liabilities arising from the borrowings by KIIFB and the Kerala Social Security Pension Limited further shrink the state’s already limited fiscal space, he said.
Satheesan appealed for an additional borrowing space of Rs 5,880 crore to offset the borrowing undertaken by the state for land acquisition for National Highway development.
He said the white paper on the state’s finances will be released in the first week of June, following which detailed information will be shared with the Centre. The government will also step up efforts to secure pending funds from various Union ministries.
It will examine whether delays were caused by non-submission of utilisation certificates or audited accounts, and clear all such backlogs before the state budget is presented, he said.
CM says legal aspects will be examined
On SilverLine, Satheesan said both the Union and state governments had effectively abandoned the project before his government assumed office.
The new government merely withdrew the land acquisition notification to provide relief to people who had been unable to sell or transact their properties.
Satheesan said the state cabinet had discussed the implementation of PM SHRI and that its legal aspects would be examined. He also said the state government would have to bear 40% of the cost of Mahatma Gandhi National Rural Employment Guarantee Scheme from this year, whereas the Centre had covered the entire cost until last year.
The CM also said his government will take steps to preserve the Travancore Palace in New Delhi as a proud asset for Keralites.
