Kerala Appeals for Market Borrowing Limit Reversal Amid Fiscal Pressure

The Kerala government has urgently appealed to the Union Finance Ministry to reverse a Rs 3,323 crore reduction in its market borrowing limit.

According to Kerala Finance Minister K N Balagopal, the state has already begun the process of setting up a Guarantee Redemption Fund (GRF) as mandated by new federal borrowing rules, aiming to address fiscal pressures.

Under new guidelines, failure to establish the GRF results in borrowing limit cuts. With a revised borrowing cap for FY 2025–26, Kerala seeks immediate intervention to prevent fiscal instability.

(With inputs from agencies.)