The Kerala government borrowed an additional Rs 1,920 crore on Tuesday to meet its ongoing financial requirements. The borrowing has been arranged through the Reserve Bank's core banking system, e-Kubera, by issuing debentures with a 17-year term. The state government has explained that the funds will be used to support its development activities.
With this latest borrowing, Kerala's public debt for the current financial year will now rise to Rs 41,632 crore. This is not the first borrowing of the month; earlier, on February 4th, the state borrowed Rs 3,000 crore. According to the Comptroller and Auditor General (CAG) report, Kerala’s total public debt and liabilities for 2023-24 are estimated at a staggering Rs 4.15 lakh crore.
In addition to the Rs 1,920 crore, Kerala has also received approval from the central government to borrow an extra Rs 605 crore. Bonds for this borrowing are expected to be issued soon. The state has argued that with increased spending in March, especially as the financial year draws to a close, it will require even more funds. The government has asked the central authorities to allow it to borrow up to Rs 5,000 crore more to avoid any financial strain in March.
Despite efforts to manage the crisis—such as halving the budgets for ongoing projects and halting non-essential ones—the financial situation remains tough. Kerala has sanctioned annual projects worth Rs 38,886.91 crore for the year. However, the state has managed to utilise only 48.48% of this amount so far.
Kerala is not the only state borrowing heavily. A total of 17 states are collectively borrowing Rs 41,504 crore today via the e-Kubera system.
Other states, including Maharashtra and Tamil Nadu, are borrowing Rs 5,000 crore each. Rajasthan is borrowing Rs 4,500 crore, while Odisha and Uttar Pradesh are borrowing Rs 3,000 crore each.
