Kerala state government has decided to borrow Rs 2500 Crore from the open market to meet the expenses of Onam festival
Thiruvananthapuram: Kerala state government has decided to borrow Rs 2500 crores from the open market to meet the expenses of Onam festival of the state to be held on 25 August.
The state government requires Rs 7000 crores to provide salary and pension to people during the Onam season. The government is also planning to borrow an additional Rs 1000 crores by this month. This is within the borrowing limit allowed by the central government.
The money is collected from banks through debentures issued by the Reserve Bank. The amount has to be repaid within ten years.
Last month, the government had already borrowed Rs 1000 crores from the open market. Each year the government borrows money during Onam season as the expense of the state skyrockets. Debentures of Rs 2500 crores have been issued which will be auctioned on 7 August.
In July, the revenue of the state was reduced to Rs 1498 crores which was Rs 1561 crores in June. It is assumed that the heavy rains in the state and the lorry strike resulted in the decline in tax revenue thereby causing a decline in GST revenue as well.
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Last Updated 4, Aug 2018, 4:10 PM