The State government will give ₹50 crore to the cash-strapped Kerala State Road Transport Corporation (KSRTC) in connection with Onam, Finance Minister K. N. Balagopal informed the Assembly on Thursday.
Mr. Balagopal made the announcement while replying to a discussion on the Kerala Fiscal Responsibility (Amendment) Bill, 2022 in the House.
(On Wednesday, a High Court Division Bench had stayed an earlier single-bench order asking the State government to pay ₹103 crore to the KSRTC to disburse salaries. The order came on an appeal by the government against the single-bench decision.)
Mr. Balagopal said the government can make allocations only in accordance with the Budget passed by the Assembly. Making changes in allocations would require cuts elsewhere, he pointed out.
The State also faced constraints as it stood to be deprived of ₹23,000 crore this fiscal on account of the Centre's fiscal policies, he said.
The Assembly on Thursday passed the Kerala Fiscal Responsibility (Amendment) Bill, 2022 aimed at ensuring prudence in fiscal management and stability by progressive elimination of revenue deficit and sustainable debt management in line with the revised road map of the 15th Finance Commission.
It seeks to reduce the fiscal deficit to 3% of the estimated Gross State Domestic Product (GSDP) by March 31, 2026, and slash the total debt liabilities of the State to 32% by 2025-2026.
