Thiruvananthapuram: With the state facing a severe financial crisis, several projects being implemented by various departments will have to be cut down, a cabinet meeting cautioned.
The meeting discussed the financial crisis being faced by the state ahead of the Budget presentation on February 3. Though the ministers raised the issues related to the financial crisis, the Chief Minister did not react.
Ministers pointed out the acute crisis faced by various ministries in the meeting. Minister K N Balagopal observed that the crisis is so severe that not even the salaries and pensions cannot be distributed. The hospitals which made available free treatment to poor patients under the Karunya Arogya Suraksha Padhathi (KASP) have threatened to withdraw from the scheme with the government failing to pay them up. The State Budget is being presented amidst this crisis.
The Cabinet meeting felt that the Central Government was choking the state without allowing it to take loans. The Cabinet meeting held last week had decided to demand the Centre raise the ceiling for loans.
When Chief Minister Pinarayi Vijayan met Prime Minister Narendra Modi, he also demanded that the ceiling for loans be raised. Malayala Manorama had revealed the grave financial crisis facing the state through its series ‘Nayapaisayillatha Navakeralam’ (The penniless modern Kerala).
