Huge hole in central grants will affect state budget

Thiruvananthapuram: The state budget will be in the red as a result of 5000 crore cut in the central grants to Kerala.

The crisis could be tided over only through cutting on expenditure as well as finding new sources. Or the budget which has been already prepared needs to be revamped.

The finance department is in dilemma over how to tackle the situation.

The hope for extending the credit limit of the state has fallen through.    

Another demand to meet the same fate was specially considering the loan from World Bank and other agencies. This has been included in the state’s credit limit, making it hard availing developmental loans.