Centre’s `Onam festival loan' of 4,200 crore arrives in time

The central government has authorised an emergency loan of Rs 4,200 crore to Kerala, granting the debt-ridden State government crucial funds for its Onam celebrations. The approval from the Centre arrived just in time as Kerala was struggling to find money to foot the bill for the Onam festivities.

Borrowal limits

This year, the Centre approved a total borrowing of Rs 37,512 crore for the State. Of this, Rs 21,253 crore was allocated for use until December, with the remainder available from January to March.

By Tuesday, Kerala had already exhausted its Rs 21,253 crore borrowing limit and sought an advance loan of Rs 5,000 crore from the allocation set for the January-March period. Responding to this request, the Centre approved an emergency loan of Rs 4,200 crore. The state plans to utilize this amount by the 10th of this month to fund the Onam celebrations.

Financial Planning for Onam

The Kerala government anticipates an expenditure of approximately Rs 20,000 crore on Onam, which includes salaries, pensions, bonuses, festival allowances, and welfare pensions. The balance amount will be sourced from other revenues, including tax collections. Additionally, the government plans to take a Rs 1,000 crore loan from the cooperative banks that can be used to settle the welfare pension arrears for one or two months. 

Wayanad `salary challenge' remains a challenge 

The government had hoped to raise Rs 500 crore through a `salary challenge' to support those affected by the recent Wayanad disaster. However, unofficial estimates suggest that less than Rs 200 crore has been raised so far. In contrast, the public and many celebrity figures have generously contributed around Rs 317 crore to aid the cause.

With the emergency loan now approved, Kerala is set to proceed with its Onam preparations, ensuring that the festival will be celebrated with the usual grandeur.