The has decided to raise Rs 1,500 crore from the market as Kerala continues to be in a financial crisis.
A statement issued by the finance department said that the government decided to raise the amount and use it for developmental activities in state. However, it is also learnt that the funds are meant for the disbursal of salaries and pensions next month.
The states main committed expenditure include salaries, pensions and interest payments on loans and the revision of salaries and pensions based on the recommendations of the 11thpay commission alone has caused an additional burden of Rs 15,000 crore annually to the exchequer.
The government has been maintaining that with the discontinuation of GST compensation by Centre, Kerala is facing a shortage of Rs 12,000 crore every year. In addition, another Rs 6,700 crore is the Revenue Deficit grant this year.