India News | Free Onam Kits Unlikely for All Ration Card Categories as Kerala Govt Going Through Financial Crisis

Thiruvananthapuram, Jul 24 (PTI) The Kerala government, which is facing a financial crisis, is unlikely to distribute free kits containing essential food items to ration cardholders in all categories during the upcoming Onam season.

An indication in this regard was given by state Finance Minister K N Balagopal here on Monday.

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Talking to reporters here, the Finance Minister said it is unlikely to provide free food kits for all ration card holders, as was distributed during the Covid-19 period and Onam seasons thereafter.

He, however, said no final decision has been made so far.

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"This time, Onam kits will be given. But ration cardholders of all categories are unlikely to get it. Giving Onam kits to everyone is not a usual practice," Balagopal said, responding to a query.

The minister said the government is trying to make a happy Onam festival, and borrowing will be required to meet the expenses during the festival.

Free Onam food kits containing 14 items were distributed to all ration cardholders during the Onam season last year.

There are four categories of ration cardholders in the state including Antyodaya Anna Yojana cardholders (yellow cards), Priority Household cardholders (pink card), Non-Priority Subsidy cardholders (blue) and the Non-Priority Non-Subsidy card holders (white).

Balagopal urged the Union government to provide more borrowing opportunities to Kerala or provide an increased tax share to tide over the financial crisis the southern state is facing.

He said that during his recent meeting earlier this month with Union Finance Minister Nirmala Sitharaman, he had sought special financial assistance, citing a series of setbacks, including curbs on borrowing and the cessation of GST compensation. The Goods and Services Tax (GST) compensation ended last year.

The minister said the state does not get the tax revenue it used to get from the Centre.

Balagopal also said the state government would approach the Supreme Court against the central government's decision to curtail borrowing.

The minister also alleged that the policies of the central government were destroying state public sector enterprises like the Kerala State Road Transport Corporation (KSRTC).

"The functioning of the KSRTC has been affected by rising fuel prices. The central government's policies are destroying the public sector," he said, responding to a query on the delay in providing salaries to its employees.

Noting that KSRTC needs Rs 120 crore per month to provide salaries and pensions, Balagoal said steps are being taken to provide them in two phases.

He urged the KSRTC management to make efforts to increase its revenue.

In a memorandum submitted to Sitharaman, Balagopal had noted that fiscal constraints in 2023-24 will be more than that of previous years.

He had said there is a shortage of around Rs 8,400 crore in revenue deficit grants compared to the previous financial year, and there is also a loss of around Rs 10,000 to 12,000 crore by way of GST compensation annually due to the cessation of the compensation, as per the representation.

Balagopal had also said there is a resource loss of about Rs 8,000 crore on account of restrictions in the borrowing limit.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)