Kerala reconstruction, rehabilitation: State seeks FRBM limit relaxation

Rehabilitation process of the floods, that claimed close to 350 lives, has gathered momentum

In order to open more fundraising channels for reconstruction and rehabilitation of its flood-hit areas, Kerala is set to approach the central government to increase its market borrowings limit from 3 per cent of Gross State Domestic Product (GSDP) to 4.5 per cent. The state is already in talks with the World Bank to raise Rs 100-150 billion. This comes at a time when the Centre has declined aid from foreign countries like the United Arab Emirates, which, according to Chief Minister Pinarayi Vijayan, promised “Rs 7 billion”.

If the Centre agrees to relax the Fiscal Responsibility and Budget Management (FRBM)