Kerala Chief Minister Pinarayi Vijayan on Monday expressed his displeasure at the way certain conditions have been set when Union Finance Minister Nirmala Sitharaman raised the borrowing limits of states from 3 percent to 5 percent of GDP for the financial year 2020-21.
“The Centre is borrowing 5.5 percent of the GDP but when it came to states, conditions are being placed. This is against the federal structure and is not fair,” said Vijayan.
He said currently states can borrow only three percent and were the first to demand a hike in the borrowing limit to 5 percent.
“To increase the borrowing limit from 3 to 3.5 percent is allowed for all, with no conditions. But from 3.5 to 4.5 percent there have been four conditions. This is not acceptable, anyway, we are waiting for more details on it,” said Vijayan and added that if conditions are being set then Kerala will only be able to borrow Rs 4,500 crore.
He also pointed out that hiving off public sector enterprises and limiting key sectors is not going to strengthen the country in any way and Kerala will not toe such a line.
“From the Rs, 20 lakh crore financial package that has been announced not even 5 percent of it is reaching the people, while Rs 1.5 lakh crore have been given as tax relief for corporates. Still, there is no word on the allocation for public health,” said Vijayan.
