<h1>Kerala fiscal squeeze from reduced borrowing consent, GST rate rationalisation and export shocks threatens essential services.</h1> Kerala reports that the Centre reduced its fourth-quarter borrowing consent from an estimated Rs 12,516 crore to Rs 5,636 crore after a Rs 5,944 crore deduction, creating acute fiscal stress that limits the state's ability to meet pre-committed liabilities and finance essential public services; the state attributes the narrowed fiscal space to GST rate rationalisation causing an estimated Rs 8,000 crore annual shortfall and reciprocal US tariff measures inflicting an additional estimated Rs 2,500 crore annual loss.