🚨 Let's Know about
#KeralaModel:
The so called Kerala model is so successful that there is a need for bail out package for day to day activities like pension and salary?
🔺Why the Struggle?
▪️Supreme Court urges central support for one-time bailout package.
▪️GoI agreed to provide ₹5000cr, but Kerala rejects, demands 10000 crore.
▪️ Chief Secretary of Kerala also acknowledged that the state is in deep financial crisis (Nov‘23)
▪️ RBI also confirmed Kerala's significant financial woes.
▪️ Central govt reduces borrowing limits, highlighting Kerala's need funds for daily operations, not infrastructure development projects like other states.
🔻Additional Financial Indicators:
▪️ Kerala's revenue deficit decreases from 2.23% to 0.88% (21-22).
▪️Revenue deficit to fiscal deficit ratio exceeds 65%.
▪️ Growth rate of agriculture and allied activities In 22-23 declined to 0.87%
▪️ Kerala has an unemployment rate of 7%.
🔺Central Concern:
▪️The central government fears Kerala's inability to repay loans, potentially burdening the GoI, as these loans are sovereign-guaranteed loans
▪️ These could lead to global embarrassment if one state defaults in one of the world's fastest-growing nation.
What are your thoughts on this purported communist development model, given Kerala's current financial predicament?
#Communist #LeftModel #Kerala
Kerala vs Centre | Supreme Court in an interim order refuses Kerala Government's plea seeking direction to Centre to relax its borrowing cap restrictions