Kerala not caught in debt trap, says finance minister Balagopal
Finance minister K N Balagopal on Wednesday rejected allegations that the state is caught in a debt trap, terming them politically motivated and factually incorrect.
Balagopal told a news conference that the state's borrowings were well within the limits prescribed by Fiscal Responsibility and Budget Management (FRBM) Act and undertaken with Centre's approval.
"We're only borrowing as much as required for development and welfare. In fact, our borrowings are lower than the ceiling set by Centre," he said.
He said Kerala is permitted to borrow up to 3.5% of its Gross State Domestic Product (GSDP), but borrowed only 2.5% in 2022-23 and 2.99% in 2023-24. "Even the borrowing we were entitled to was curtailed by Centre," he said.
Balagopal presented data to show that the state's debt-to-GSDP ratio declined steadily, from 38.47% in 2020-21 to a projected 33.9% in 2024-25.
"This is evidence of improving fiscal health," he said.
He acknowledged that total debt rose from Rs 2.96 lakh crore in 2020-21 to Rs 4.31 lakh crore in 2024-25. However, he said the GSDP expanded from Rs 7.79 lakh crore to Rs 12.75 lakh crore during the same period. "Our debt has not grown disproportionately. The size of our economy has increased significantly," Balagopal said.
He also criticised the previous UDF govt.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Secure Your Child's Future with Strong English Fluency
Planet Spark
Learn More
Undo
"Between 2011 and 2016, GSDP growth was 11.6%, but debt grew at 14.9%. In contrast, under the present LDF govt, GSDP has grown at 13.5% and debt at only 9.8%," he said.
Balagopal said the state's debt traditionally doubled every five years. "Following that trend, our total liabilities should have touched Rs 6 lakh crore by 2025-26. But thanks to tighter control and a more responsible borrowing policy, they are expected to remain around Rs 4.65 lakh crore," he said.
"Even that would have been lower, had Centre not withheld funds we were legally entitled to borrow."
Balagopal said Rs 3,300 crore was cut from Kerala's borrowing limit for providing guarantees to loans taken by PSUs, with Centre citing the Guarantee Redemption Fund (GRF).
"Centre is now demanding that we earmark 5% of the total guarantees — worth around Rs 80,000 crore — as reserve in the GRF. This is an additional burden," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
23 minutes ago
- Time of India
Career Horoscope Today for June 22, 2025: Predictions for All Zodiac Signs
Get the stars to power your career development and financial growth daily. Pick up personalised clues to pump up your productivity, play it smarter with finance, and take opportunities as they come. Step up by following spot-on horoscope advice tailored to your working and wealth-building journey. Aries Career Horoscope Today , 22 June 2025 If you start your morning with focus and energy, the rest of the day will go smoothly. A productive start today can ease some of the financial pressure you've been feeling. Finish small tasks quickly—they'll give you a sense of control. Your action-oriented nature helps you move forward, especially in money matters. Avoid delays and take charge early in the day. By evening, you may even see a small gain or relief. Today proves that good planning in the morning creates peace in the evening. Taurus Career Horoscope Today, 22 June 2025 Today, your emotions might try to guide your spending—but pause before opening your wallet. Emotional purchases may bring short joy but long regret. Try to stick to your planned expenses and think twice before spending on anything unnecessary. At work, your calm and patient nature helps you solve problems others avoid. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo Use this strength wisely. Focus on what adds long-term value. This is a good day for making a savings plan or reviewing your budget. A little discipline today will protect your peace tomorrow. Gemini Career Horoscope Today, 22 June 2025 Your leadership quality is shining through—but not in big talks or meetings. Today, how you handle small tasks will show your true strength. Pay attention to details, reply on time, and keep your word. These things will create a positive impression on your team or seniors. Financially, be smart with little expenses—they can quietly build up. A calm and organised approach will bring clarity. Even if others don't notice right away, your steady efforts today will lead to strong respect and better chances soon. Cancer Career Horoscope Today, 22 June 2025 Plan not just for today, but for what you want to achieve one month from now. Make a small list of career goals or financial targets. Even a small action today, like updating your resume or adjusting your budget, will help you in future. Avoid laziness or emotional distractions. Your natural ability to nurture and plan can guide you to better choices. Start small, but stay committed. Future-you will be thankful for today's effort. Leo Career Horoscope Today, 22 June 2025 Today, whatever you give your energy and focus to will start growing—so choose wisely. Your thoughts, time, and effort are like seeds. If you put them in the right place, results will surely follow. Avoid wasting time on people or tasks that drain you. At work, give attention to one thing that truly matters. Financially, focus on savings or an idea that brings stability. Don't scatter your energy. Stay centred, and you'll notice things begin to move in the right direction. Your focus is your power. Virgo Career Horoscope Today, 22 June 2025 Today brings a clear message—simplify your goals. You may be overthinking or juggling too much. To move ahead in your career, pick one strong goal and work fully towards it. Your natural eye for detail will guide you, but don't let perfection slow progress. A simple plan is better than a complicated one that never starts. Financially, avoid confusion—just stick to one solid budget. Clarity will give you confidence. Less is more today, and when your path feels clear, your energy flows smoother. Libra Career Horoscope Today, 22 June 2025 You're much closer than you think to a financial breakthrough. Don't lose hope if results aren't instant. Your efforts are building up behind the scenes. A small win today may point towards bigger success soon. Keep an eye on unexpected opportunities, especially from old contacts or delayed payments. At work, stay balanced and don't get distracted by office drama. Let your charm and calm nature do the work. Financially, stay steady—avoid impulse buys. One smart move today could open doors you've been waiting for. Scorpio Career Horoscope Today, 22 June 2025 Today, a bold pitch, idea, or proposal could shift your entire path. Don't hold back if you have something powerful to say—speak up. Your intense energy works best when expressed clearly and confidently. This is a great day to present something you believe in or to ask for what you deserve. Financially, there might be a chance to invest or negotiate something better. Use your instincts—they are strong right now. One courageous step can bring the change you've been silently working toward. Sagittarius Career Horoscope Today, 22 June 2025 Stay focused today—someone influential is quietly observing your progress. Your dedication and way of working are making a silent impact. Even if no one praises you out loud, your efforts are being noticed. Avoid casual work or distractions. Financially, avoid showing off or overspending to impress. Keep your mind on your goals, and success will follow. A new opportunity could come through a connection, so stay sharp and be prepared. Your hard work is attracting the right kind of attention—make every move count. Capricorn Career Horoscope Today, 22 June 2025 Today, be very mindful of where your time and energy go. Distractions may look harmless, but if they don't add to your income or skills, they are pulling you away from your goals. Your strength is in your discipline, so return to your routine and priorities. Financially, stay away from quick-money ideas or unplanned spending. A little seriousness now will lead to big rewards later. Make every task today count toward your growth. Small, consistent efforts will protect your future and strengthen your position. Aquarius Career Horoscope Today, 22 June 2025 Be firm today about your worth—especially when it comes to your time and money. If someone asks you to lower your rates or overwork for free, say no with grace. Your creativity and ideas are valuable. You don't need to rush or please everyone. Financially, keep a balance—respect your efforts and don't undersell. Choose tasks wisely, and don't feel guilty for saying no to what doesn't serve you. Your calm confidence today can bring both respect and better opportunities. Let your work speak for itself. Pisces Career Horoscope Today, 22 June 2025 Your dreams are big, but reaching them needs short-term discipline. Today is perfect for small sacrifices that bring big gains later. Skip the laziness, delay comfort, and focus on what matters. Even completing one tough task today will make you feel stronger. Financially, avoid unnecessary spending—choose savings or smart investments instead. Step-by-step, you're building something meaningful. Stay dedicated—future-you will thank you for today's focus and patience. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
Time of India
25 minutes ago
- Time of India
Telangana cabinet to finalise reply to Ghose panel on KLIS and other key issues
HYDERABAD: The state cabinet meeting scheduled for Monday will deliberate on the information to be provided to the PC Ghose Commission, which has requested details of cabinet approvals by the previous govt for the Kaleshwaram Lift Irrigation Scheme (KLIS). The commission, currently investigating the sinking of piers at Medigadda and the damage to the Annaram and Sundilla barrages under KLIS, has cross-examined former chief minister K Chandrasekhar Rao and former ministers T Harish Rao and Eatala Rajender. Following their depositions, the commission is understood to have written to the govt seeking further details. KCR , Harish Rao, and Eatala reportedly informed the commission that the project was undertaken with cabinet approval. However, Agriculture minister Tummala Nageswara Rao, who served during the first term of the previous BRS govt, claimed that many decisions were made solely by KCR. "The chief minister's office has responded to the Ghose Commission stating that the requested information will be submitted by June 30. The matter will be discussed at the cabinet meeting on June 23," sources in the CMO said. Chief minister A Revanth Reddy has already stated that the cabinet will also consider the advantages and disadvantages of initiating discussions with Andhra Pradesh CM N Chandrababu Naidu to find an amicable resolution to the inter-state river water sharing issue, including the contentious Banakacharla project, between the two Telugu-speaking states. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Free P2,000 GCash eGift UnionBank Credit Card Apply Now Undo "The chief minister and ministers are also expected to discuss the panchayat elections, the law department's report regarding the submission of material to the court on fixing reservations in local bodies, implementation of the Rythu Bharosa scheme, the Indiramma housing scheme, and other key issues," sources added.
Hans India
36 minutes ago
- Hans India
HM Shah to visit Chhattisgarh today to bolster anti-Maoist strategy
New Delhi: Union Home Minister Amit Shah is scheduled to arrive in Chhattisgarh on Sunday for a crucial two-day visit to strengthen the ongoing crackdown against left-wing extremism and launch key infrastructure projects to support forensic investigation capabilities in the region. During the visit (June 22-23), HM Shah is scheduled to chair a high-level meeting with senior security and administrative officials to evaluate the progress made in the fight against Maoist insurgency. The meeting will also focus on refining the Centre's strategy to achieve the declared goal of eliminating Maoist influence by the set deadline of March 31, 2026. Highlighting the Centre's commitment to long-term stability and improved security infrastructure in the region, Shah will also lay the foundation stone for a campus of the prestigious National Forensic Science University (NFSU) in Naya Raipur. The proposed world-class campus will be developed on 40 acres of land already allocated by the state government. The estimated cost for the project is between Rs 350–400 crore and will be entirely funded by the Central government. In addition to the NFSU campus, a separate 6-acre area has been earmarked for a state-run forensic laboratory, aimed at further enhancing the state's investigative capabilities. According to Chhattisgarh Home Minister Vijay Sharma, the Union Home Minister will perform the 'bhoomi-pujan' for both facilities during his visit. Shah will also spend time at one of the frontline security camps, reflecting the Centre's solidarity with forces operating in high-risk zones. Sources familiar with the anti-Naxal operations have reported significant success, with 32 out of 45 members of the Maoist Central Committee already neutralised in various encounters. Efforts continue to locate and apprehend the remaining top leaders of the outlawed outfit.
