Thiruvananthapuram: Kerala is facing serious financial pressure due to the curtailment of funds and fiscal restrictions imposed by the Centre, Governor Rajendra Vishwanath Arlekar said on Tuesday.
Addressing a function in the state capital, the Governor said that limitations on borrowing and reduced financial flexibility have placed additional stress on Kerala’s economy. He noted that despite these constraints, the state government has been making efforts to meet its developmental and welfare commitments.
The Governor pointed out that restrictions on loans and delays in fund releases have affected the state’s ability to implement major projects and manage expenditure smoothly. He stressed the need for cooperative federalism, adding that states should be given adequate financial autonomy to address their unique challenges.
Highlighting Kerala’s social development model, the Governor said sustained financial support is crucial for maintaining progress in sectors such as healthcare, education, and social welfare.
His remarks come amid ongoing debates between the state and the Centre over fiscal policies, borrowing limits, and allocation of central funds, with the Kerala government repeatedly raising concerns over shrinking fiscal space.
