Kerala: LDF Government Goes For Steep Cuts In Planned Expenditure Due To Financial Crisis

The Left Democratic Front (LDF) government in Kerala has decided to go for a massive cut in expenditure due to the financial crisis being faced by the state.

Planned projects are set to be reviewed by a committee led by the Chief Secretary, and based on the evaluation, they would either be set aside or the funds allocated to them would be reduced by 50 per cent.

For projects less than Rs 10 crore, the decision would be taken at the department level.

As per a report by Onmanorama, the total plan outlay of the state government for the current fiscal year is Rs 21,838 crore and the utilisation till date is 15.87 per cent.

It contended that the Centre had reduced its net borrowing ceiling by introducing certain new aspects, which were earlier not calculated as part of the state’s borrowings.

As per the borrowing limit notified by the Centre, the state can borrow upto Rs 21,253 crore till December 2024.

Also Read: Explained: Borrowing Limit Of Rs 21,253 Crore Granted By The Centre To Kerala Government