THIRUVANANTHAPURAM : Even if help be ruled out, the Centre should at the least pay state its arrears, said Finance Minister TM Thomas Isaac. It is time that Centre ended its evasive tactics. After all, furthering the fight against Covid-19 would be possible for Centre only with states and the public by its side, the minister added.
The state government will now go for a loan to meet salary expenses of its employees. The borrowing will come through on 5 April. The option is being tapped after the Reserve Bank temporarily raised the borrowing limits whereby,an additional Rs 2,000 crore can be availed in loans.
30 -40 percent of the borrowed sum will be lost in loan repayment. In effect, the usable fund would be just the remaining portion. GST revenue has taken severe hit, with less than one-fourth income trickling in than previously expected. There is huge dent in April incomes and this month would be worse, said the minister.
