Kerala Is Bankrupt?

Описание: 💰 Recently the Supreme Court of India directed the Government of India to offer a one-time bailout package to the Kerala Government. The Government of India offered a ₹5,000 crore package. But, the Kerala Government rejected it.

⚠️ The state is in such a crisis that cases have reached the Kerala High Court where the Government failed to pay salaries and pensions to its employees. There are reports of the government treasury in Kerala stopping all non-essential payments above ₹1 crore.

💡 But, why Kerala needs a bailout?
Kerala is the most financially stretched state in India. In November 2023, the Kerala Chief Secretary said in the Kerala High Court, that the state is in a deep financial crisis. RBI also Kerala is among the financially distressed states that include West Bengal, Punjab, Rajasthan and Bihar. Kerala’s revenue deficit to fiscal deficit ratio reached the 65% mark. This means the state is taking loans not for investment but to manage day-to-day operations like salary and pensions.

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