Kerala FM lashes out at Centre for cutting state's borrowing limit by half

Kerala Finance Minister K N Balagopal on Friday hit out at the BJP-led union government for cutting down the borrowing limit of the southern state by half and accused the Centre of "targetting" it.

The minister said the state was expecting Rs 32,442 crores when the Centre had cut down the borrowing limit from 3.5 percent to 3 percent.

But a recent letter from the central government has put the borrowing limit to Rs 15,390 crores, which is half of what Kerala is entitled to borrow, he alleged.

"The move is part of the union government's political vendetta," Balagopal said.

The Centre is denying the federal rights of a state, he further said and added that no reason was given for cutting down the borrowing limit by half.

Expressing concern over whether the development would affect the budget plans of the southern state, he said people are going to suffer as the Centre is denting Kerala's rightful share.

The union government has been cutting down funds to Kerala while providing upto