Lift borrowing limit cuts after launching GRF, Kerala urges Centre
The Kerala government on Tuesday urged the Union Finance Ministry to reverse a ₹3,323-crore cut in its market borrowing limit.
The government informed the Centre that it had taken steps to establish a Guarantee Redemption Fund (GRF) — a new requirement under the Union government's borrowing rules for States.
After submitting a memorandum to Union Finance Minister Nirmala Sitharaman in New Delhi, Finance Minister K.N. Balagopal said the State had begun the process of constituting the GRF and would start contributing to it within the current financial year.
Under revised guidelines issued by the Department of Expenditure for 2025–26, States must set aside either 0.25% of their Gross State Domestic Product (GSDP) or 5% of their outstanding guarantees — whichever is higher — in a GRF. If they fail to do so, the shortfall is deducted from their annual borrowing limit.
For Kerala, this has resulted in a reduction of ₹3,323 crore from its approved borrowing ceiling for the first three quarters of the fiscal year. This deduction be reversed once the State formally notifies the GRF, Mr. Balagopal said.
'The government is in the process of establishing the fund. Contributions will begin this year,' he assured in the memorandum, calling the move essential to 'safeguard the financial stability and development trajectory of the State.' Kerala, a revenue-deficit State with high public welfare spending, has faced growing pressure on its finances.
The borrowing limit — or net borrowing ceiling — is a critical tool for the State to raise funds through open market operations and meet development needs, Mr. Balagopal said.
In addition to the GRF issue, the State has also sought the Centre's reconsideration on an earlier ₹1,877.57-crore deduction.
This amount was permitted as additional borrowing in 2023-24 due to changes in GSDP estimates but was later adjusted against the 2024–25 borrowing limit — even though final GSDP figures for that year have not been released.
Mr. Balagopal has requested that the adjustment be shifted to 2025–26 in light of more recent, upward GSDP revisions for 2022–23 and 2023–24.
The Finance Minister called for 'kind and expeditious intervention' from the Union government to address these matters and help ensure the State's fiscal balance.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
15 minutes ago
- Hans India
Direct train between Jammu and Srinagar will run from September: Union Minister Vaishnaw
Jammu: Railway Minister Ashwini Vaishnaw on Thursday said that the direct train between Jammu and Srinagar will run in September after work on the Jammu railway station is completed. Talking to reporters today, Ashwini Vaishnaw said that work on the Jammu railway station is going on and it is expected to be completed by September. "With the availability of platforms 5 and 6, Vande Bharat trains will run between Jammu and Srinagar directly in September," he said. The Union Minister visited Jammu railway station, where he inspected the ongoing development works. His visit comes as part of the preparations for the launch of the much-awaited train service to Kashmir. Prime Minister Narendra Modi is scheduled to flag off two Vande Bharat trains at Katra town on Friday. The PM will visit Chenab & Anji bridges, two engineering marvels on the rail link between Katra & Srinagar, before inaugurating the Vande Bharat train service. PM Modi is also scheduled to lay the foundation stone and inaugurate several projects worth Rs 46,000 crore in Jammu and Kashmir during his visit. Meanwhile, Union Minister Dr Jitendra Singh and J&K Chief Minister Omar Abdullah visited the Chenab Bridge to oversee final preparations ahead of the inauguration of the railway bridge by the Prime Minister on Friday. Unprecedented security has been put in place ahead of the Prime Minister's visit on Friday. A multi-layered security detail, drawn from the Special Protection Group (SPG), army, CAPFs and J&K Police, will protect the historic visit of the PM. There is extraordinary vigil around PM Modi's Friday visit as this is his first visit after Operation Sindoor to J& K. The ubiquitous presence of security forces is seen in Jammu city and Reasi district, with a focus on the rail track from Katra town right up to Baramulla town in Kashmir. All vantage points along the mountainous track have been taken over by the army and other security forces, while the rail track is dotted with CAPFs equipped with electronic equipment, drones, sniffer dogs and night vision devices.
Time of India
32 minutes ago
- Time of India
Centre hikes central deputation allowance for certain category of officers
The central government has increased the central deputation allowance. This is for specific officer categories. The Department of Personnel and Training issued an order. The Central Secretariat (Deputation on Tenure) Allowance rates are revised. All India services and Group A central services officers are eligible. They must be appointed as Under Secretary, Deputy Secretary, or Director. Tired of too many ads? Remove Ads The Centre has increased central deputation allowance for certain categories of officers, according to a Department of Personnel and Training (DoPT) revised rates of Central Secretariat (Deputation on Tenure) Allowance (CDTA) are admissible to the officers of all India services and organised Group A central services on their appointment as Under Secretary, Deputy Secretary and Director in the central secretariat under the Central Staffing Scheme, the order issued on Wednesday present, during their tenure as Under Secretary, Deputy Secretary, or Director, the officers are paid CDTA at the rate of 10 per cent of their basic pay, subject to a ceiling of Rs 9,000."In consideration of references received from various ministries/departments and after due consultation with Department of Expenditure, it has been decided that the ceiling will further rise by 25 per cent each time Dearness Allowance increases by 50 per cent," the DoPT said. PTI
India Gazette
37 minutes ago
- India Gazette
"India not a polluting nation, yet committed to net zero by 2070": Union Minister Dharmendra Pradhan on World Environment Day
New Delhi [India], June 5 (ANI): On the occasion of World Environment Day, Union Education Minister Dharmendra Pradhan emphasised the importance of the 'Ek Ped Maa Ke Naam' campaign, underscoring its role in advancing India's environmental objectives under Mission LiFE. Pradhan added that although India is not a polluting country, Prime Minister Modi has committed to achieving the goal of Net Zero by 2070. Speaking to media persons, Pradhan said, 'In India, we are taking Mission LiFE (Lifestyle for Environment) forward. India is not a polluting country. Even then, PM Modi has assured the world community that by 2027, India will achieve the goal of Net Zero. Preparations for this will have to start from now...' He added, 'This time, the school and higher education departments are working together to speed up the 'Ek Ped Maa Ke Naam' campaign. Our aim is for every student and teacher to join this campaign...' Earlier today, Prime Minister Narendra Modi flagged off 200 electric buses in Delhi as part of the Delhi Government's sustainable transport initiative. He also planted a tree as part of the 'Ek Ped Maa Ke Naam' campaign, which promotes environmental awareness and individual responsibility toward nature. The event was held in the presence of Delhi Lieutenant Governor VK Saxena, Chief Minister Rekha Gupta, Union Minister for Environment, Forest and Climate Change, Bhupender Yadav, and Delhi Minister of Industries, Food and Supplies, and Environment, Forest and Wildlife Manjinder Singh Sirsa. Prime Minister Modi shared a video message on his official X account during World Environment Day, urging people to deepen their efforts to protect the planet and overcome environmental challenges. In the video's caption, PM Modi wrote, 'This #WorldEnvironmentDay, let's deepen our efforts to protect our planet and overcome the challenges we face. I also compliment all those working at the grassroots to make our environment greener and better.' In the video message, PM Modi said, 'Prakriti Rakshati Rakshita', those who protect nature, nature protects them.'The Prime Minister highlighted India's ancient tradition of environmental balance, 'Balance in the environment has always been a part of our ancient tradition. It is said in our culture, 'Yat pinde tat brahmande', meaning, what exists in the body also exists in the universe. Whatever we do for ourselves directly impacts our environment.' PM Modi stressed that individual actions directly impact the environment and called for collective action to protect the world's climate.(ANI)
