<h1>Kerala says central fiscal classifications and transfer adjustments have cut borrowing limits and disrupted state development funding.</h1> Kerala alleges central fiscal measures have constrained its development financing by treating KIIFB and similar agency borrowings as state debt, applying GRF-linked deductions and recovering IGST transfers for technical reasons, and reducing divisible tax shares and GST compensation, cumulatively shrinking market borrowing limits and central receipts and impairing budget planning and infrastructure funding.