The Kerala government’s move to borrow Rs 4,800 crore ahead of Onam has sparked alarm among financial experts. The funds, intended to cover festival expenses such as welfare payments and employee bonuses, come at a time when the state is already grappling with a growing fiscal crisis.
With debt levels soaring and expenditures consistently outpacing revenue, experts warn that this borrowing could worsen Kerala’s financial situation. While the immediate relief will help the government meet Onam-related commitments, it also raises fears of pushing the state’s debt to unsustainable levels, threatening its long-term economic stability.
