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State is facing liquidity crisis due to declining share from Union transfers
The New Indian Express Kozhikode
|January 18, 2025
KERALA is facing financial stress due to "tapering of revenue deficit grant and cessation of GST compensation," Governor Rajendra Vishwanath Arlekar said in his maiden policy address in the Kerala Assembly on Friday.
This despite the state taking earnest measures for revenue mobilisation and rationalisation of expenditure, he said at the start of the 13th session of the 15th Kerala Legislative Assembly.
Kerala is facing a liquidity crisis due to declining share from Union transfers. Kerala's share in the central divisible pool steadily declined from 3.875% during the 10th Finance Commission to 1.925% under the 15th Finance Commission.
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