Festive season blues: Free Onam kits unlikely for all ration card categories as Kerala is in a financial crisis: KN Balagopal

He, however, said no final decision has been made so far.

‘Not a usual practice’

“This time, Onam kits will be given. But ration cardholders of all categories are unlikely to get it. Giving Onam kits to everyone is not a usual practice,” Balagopal said, responding to a query.

The minister said the government is trying to make a happy Onam festival, and borrowing will be required to meet the expenses during the festival.

Free Onam food kits containing 14 items were distributed to all ration cardholders during the Onam season last year.

There are four categories of ration cardholders in the state including Antyodaya Anna Yojana cardholders (yellow cards), Priority Household cardholders (pink card), Non-Priority Subsidy cardholders (blue) and Non-Priority Non-Subsidy cardholders (white).

More borrowing opportunities

Balagopal urged the Union government to provide more borrowing opportunities to Kerala or provide an increased tax share to tide over the financial crisis the southern state is facing.

He said that during his recent meeting earlier this month with Union Finance Minister Nirmala Sitharaman, he had sought special financial assistance, citing a series of setbacks, including curbs on borrowing and the cessation of GST compensation. The Goods and Services Tax (GST) compensation ended last year.

The minister said the state does not get the tax revenue it used to get from the Centre.

Balagopal also said the state government would approach the Supreme Court against the central government’s decision to curtail borrowing.

Also Read: War of words over Kerala’s borrowing limit issue

‘Central policies destroying public sector’

The minister also alleged that the policies of the central government were destroying state public sector enterprises like the Kerala State Road Transport Corporation (KSRTC).

“The functioning of the KSRTC has been affected by rising fuel prices. The central government’s policies are destroying the public sector,” he said, responding to a query on the delay in providing salaries to its employees.

Noting that KSRTC needs ₹120 crore per month to provide salaries and pensions, Balagoal said steps are being taken to provide them in two phases.

He urged the KSRTC management to make efforts to increase its revenue.

Related: Cut in borrowing limits; Kerala’s welfare-pensioners suffer

‘More fiscal constraints in 2023-24’

In a memorandum submitted to Sitharaman, Balagopal noted that fiscal constraints in 2023-24 will be more than that of previous years.

He had said there is a shortage of around ₹8,400 crore in revenue deficit grants compared to the previous financial year, and there is also a loss of around ₹10,000 to 12,000 crore by way of GST compensation annually due to the cessation of the compensation, as per the representation.

Balagopal had also said there is a resource loss of about ₹8,000 crore on account of restrictions in the borrowing limit.

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