Kerala to borrow Rs 2,000 cr more as wage and pension spending again chokes the public treasury, latest news, kerala news, economy, borrowing,

Thiruvananthapuram: The Kerala government will borrow Rs 2,000 crore more, adding to the state borrowing for this financial year, which is Rs 13,436 crore.

The borrowing is within the limit prescribed by the union government. But this is the second loan in two weeks.

Apparently, the move comes at a time when the Treasury is struggling to meet salary and pension expenses for the coming month. Similarly, reports have pointed out that the government is yet to decide on the distribution of social pensions, which will require Rs 870 crore.

The state depended on the auction of bonds issued through the Reserve Bank of India (RBI) to pool the money. The same method will be used this time too. The auction will take place on November 1.

Previously, the union government suspended the state borrowing limit. As a result, the government can only borrow Rs 17,936 cr until December. This means that with the current borrowing, the state government will only be able to borrow about Rs 4,500 crore.

However, the state government hopes that the Union government will extend the limit after December. If the Union government does not adopt a favorable position, the state government will apparently face the heat of a financial crisis.

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