Kerala Expects Positive Decision From Centre on Wayanad Package: K N Balagopal

New Delhi: Kerala Finance Minister K N Balagopal on Monday expressed hope that the Centre will immediately provide a special package for the rehabilitation of Wayanad, which was ravaged by landslides in July. During a meeting with Union Finance Minister Nirmala Sitharaman in Delhi, K N Balagopal sought withdrawal of the retrospective cuts imposed on the state's borrowing ceiling. Besides, the state finance minister also requested that land acquisition cost borne by the state for widening of national highways should be treated as additional capital expenditure and not be reduced from the overall borrowing limit.

Kerala has sought a Rs 2,000 crore relief package from the Centre for Wayanad. "We hope that a positive decision will be taken instantly for granting a special package for the disaster-related rehabilitation of Wayanad," the state finance minister said in a memorandum submitted to Nirmala Sitharaman on Monday. Moreover, K N Balagopal said the Centre is looking into it and expressed hope that there will be a positive decision.

Kerala Seeks Rs 6,000 Crore Loan for Highway Projects

Meanwhile, as part of the widening of the national highways, the minister said Kerala had borne 25 per cent of the land acquisition cost. "The approved amount for this purpose is Rs 6,769 crore of which the state has already spent Rs 5,580 crore... we request that this amount be treated as additional capital expenditure for national highways development and hence the state be allowed to borrow Rs 6,000 crore in this financial year without any conditions," according to the memorandum.

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Responding to a query, K N Balagopal said the Group of Ministers (GoM) on GST on health and life insurance premiums is yet to submit its report. The matter is expected to be approved at the next meeting of the GST Council. The common view is that the rate should be reduced on health insurance and there will be a positive approach, he added. A final decision on GST on health and life insurance premiums as well as rate rationalisation will be taken by the council, chaired by Union Finance Minister and comprising state counterparts. Currently, the GST on health insurance premiums is 18 per cent.

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