<h1>Kerala's Union Budget proposals on extra borrowing, capex loans, GST revenue protection, and rural jobs funding-approval sought</h1> Kerala submitted pre-Union Budget proposals seeking Union approval for a special fiscal correction package to bridge a stated resource gap exceeding Rs 21,000 crore arising from reduced state borrowing limits and GSDP estimation impacts; if accepted, it would expand Kerala's near-term fiscal headroom. It requested additional borrowing space of 0.5% of GSDP restricted to capital expenditure and earmarking at least 25% of Union 50-year interest-free capex loans as an Asset Renewal Fund; this would channel additional debt and loan support toward infrastructure and renewal. It proposed a rule-based GST revenue protection framework with compensation through the Compensation Cess during rate rationalisation; this would mitigate state-wise revenue shocks. It also sought restoration of the earlier rural employment guarantee cost framework and higher CSS funding share (60% to 75%); this would reduce Kerala's co-financing burden.