Key Concepts:
– Fiscal Curbs: Kerala government highlights constraints on state borrowing and expenditure.
– Pre-Budget Consultation: Platform for states to discuss financial concerns with the Union government.
– K.N. Balagopal: Kerala Finance Minister emphasizing the state’s fiscal challenges.
Relevance:
– Impacts Kerala’s development projects and welfare schemes due to restricted fiscal autonomy.
– Reflects broader issues states face under the Fiscal Responsibility and Budget Management (FRBM) Act.
– Critical for UPSC aspirants studying Centre-State financial relations and fiscal federalism.
Implications:
– Potential advocacy for relaxed fiscal norms to enable balanced regional development.
– Highlights financial tensions in India’s federal structure ahead of the budget.
Reference:
https://www.thehindu.com/news/national/kerala/kerala-will-raise-issue-of-fiscal-curbs-at-pre-budget-consultation-kn-balagopal/article70491230.ece?
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