Kerala CM V D Satheesan urges MPs to seek higher borrowing limit from centre

Kerala Chief Minister V D Satheesan urged Members of Parliament from the state to press the Centre to raise Kerala's borrowing limit from 3.5 per cent to 4.5 per cent, saying the additional fiscal space is essential to sustain economic growth and infrastructure development.

The Chief Minister has already submitted a memorandum to Union Finance Minister Nirmala Sitharaman seeking an increase in the state's borrowing ceiling.

The demand was one of the key issues discussed at a meeting of MPs and state ministers convened ahead of the upcoming Monsoon Session of Parliament. The state government argued that a higher borrowing limit would help finance development projects and maintain economic momentum.

The agenda also included a proposal to develop Kerala into an integrated maritime and aviation hub, centred around the Vizhinjam Port and a state-wide airport logistics network. The Chief Minister has sought Central assistance of ₹1.54 lakh crore for the ambitious project through a memorandum submitted to Prime Minister Narendra Modi.

The meeting, however, witnessed political exchanges, with CPI(M) MP V Sivadasan accusing the ruling UDF of adopting a different stand from its position when it was in the opposition. He alleged that the UDF had earlier criticised similar demands made by the previous Left government.

Sivadasan also claimed that opposition MPs sought clarity on whether the financial assistance requested from the Centre for the maritime project would be in the form of grants or loans, but did not receive a clear response.

Apart from the borrowing limit, the 23-point agenda covered proposals for an AIIMS in Kerala, a tribal university in Wayanad, the Southern Kerala Economic Corridor, airport expansion, national highway projects, paddy procurement dues, power sector borrowing, amendments to the Wildlife Protection Act and measures to address human-animal conflict.

The issues are expected to be taken up by Kerala MPs during the forthcoming Monsoon Session of Parliament.