Why is Centre so stingy with spending amid Covid crisis, says Kerala FM

Kerala FM Thomas Isaac says the state could face a severe financial crisis if the Centre does not increase the borrowing limit by 1% of GDP

Kerala, with other states, is planning to drag the Centre to the Supreme Court for not paying their GST dues worth Rs 40,000 crore, with another Rs 40,000 crore of integrated goods and services tax pending. In the light of Covid-19, Kerala Finance Minister Thomas Isaac, in an interview with Dilasha Seth, says the state could face a severe financial crisis if the Centre does not increase the borrowing limit by 1% of GDP. Edited Excerpts:

How do you assess the Centre’s response to fight coronavirus? Is Rs 1.7 trillion relief sufficient?

The relief offered is disappointing. While the Centre has