Thiruvananthapuram, Jan 30 (PTI) Kerala Finance Minister K N Balagopal on Thursday expressed hope that the Union Budget, to be presented by Finance Minister Nirmala Sitharaman on February 1, would include a special package for the state and measures to boost economic growth.

"We have requested a Rs 24,000 crore package from the Centre, and we hope to receive at least a part of it this time," he told reporters here.

Balagopal said that, according to the RBI's State of State Finances report, the country is falling short of its projected financial growth, necessitating increased capital investment and greater borrowing flexibility for states to stimulate economic growth.

"Kerala has faced significant cuts in central allocations and now receives only half of what it used to. Additionally, revenue from taxes has also declined," the minister said.

He pointed out that the state spends 63 per cent of its revenue on expenditure, which is higher than the national average of 53 per cent. "Hence, a special package is crucial to address this shortfall," he clarified.

Balagopal said the state has also requested a Rs 2,000 crore special package for the rehabilitation of landslide victims in Wayanad.

"Despite being declared a major disaster, no assistance has been provided so far. We expect an allocation for this," he said.

An empathetic decision has been requested, the finance minister added.

Emphasising the significance of the Vizhinjam International Seaport and its potential to boost the Indian economy, Kerala has sought a Rs 5,000 crore package for the project, he said.

Additionally, the state has urged the Centre to provide Viability Gap Funding (VGF) as a special grant rather than a loan.

The minister said that the Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala State Social Security Pension Ltd (KSSPL) are incurring an annual loss of Rs 12,000 crore and requested the Centre that the borrowings of KIIFB and liquidity management of KSSPL be exempted from state’s borrowing limits.

The state has requested an extension of the GST compensation period also, he added.

Additionally, the minister called for an allocation of Rs 300 crore for expatriate welfare schemes and Rs 1,000 crore to maintain the rubber support price at Rs 250 per kg. PTI ARM ARM KH

Special financial package sought to address central allocation cuts, borrowing limits, project grants and disaster rehabilitation. Kerala requests a special financial package to offset reduced central allocations and declining tax revenue, seeking increased borrowing flexibility and exemption of KIIFB and KSSPL borrowings from state borrowing limits. The state asks that Viability Gap Funding for the Vizhinjam seaport be provided as a grant, requests dedicated funding for Wayanad landslide rehabilitation, extension of the GST compensation period, and allocations for expatriate welfare and rubber price support.