Lok Sabha Question No. 412 (UNSTARRED), answered on 2026-02-02
Subject: Increasing Borrowing Capacity of Kerala
Ministry: FINANCE
Asked by: Shri N K Premachandran

## GOVERNMENT OF INDIA MINISTRY OF FINANCE

## DEPARTMENT OF EXPENDITURE

## LOK SABHA

## UNSTARRED QUESTION NO. 412

## TO BE ANSWERED ON MONDAY, 2 nd  FEBRUARY, 2026 MAGHA 13, 1947 (SAKA)

## INCREASING BORROWING CAPACITY OF KERALA

## 412. Shri N K Premachandran

Will the Minister of Finance be pleased to state:

- (a) whether  the  Union  Government  proposes  to  increase  the  borrowing  capacity  of Government of Kerala unconditionally, if so, the details thereof;
- (b) whether the Government of Kerala requested to the Union Government to increase the borrowing capacity without condition, if so the details thereof along with the action taken thereon;
- (c) whether the Government of Kerala remitted the State share of Jal Jeevan Mission;
- (d) if  so,  the  total share of the State as per norms till date and the total share spent by the State till this date and balance State share;
- (e) whether the Government of Kerala requested to the Union Government to allow the State to borrow an additional amount equal to the State share of Jal Jeevan Mission exceeding the borrowing limit of State of Kerala; and
- (f) if so, the action taken thereon?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI PANKAJ CHAUDHARY)

(a)  No  Sir.  As  per  the  recommendations  of  the  Fifteenth  Finance  Commission,  the  Net Borrowing  Ceiling  of  the  States  has  been  fixed  at  3  percent  of  the  Gross  State  Domestic Product  (GSDP)  for  the  current  financial  year  2025-26.  Additionally,  the  States  may  also avail  an  additional  borrowing  of  up  to  0.50  percent  of  GSDP  subject  to  meeting  certain performance criteria in Power Sector.

(b)  Yes  Sir.  The  State  Government  of  Kerala  vide  memorandum  dated  09.10.2025  has requested the Union Government to increase the borrowing capacity of the State. A suitable reply in  this  regard  from  the  appropriate  level  has  been  sent  to  the  State  Government  vide letter dated 26.12.2025 stating that the Union Government follows a uniform yardstick while considering  the  requests  for  borrowing  consent  to  States  under  Article  293(3)  of  the Constitution of India.

(c) & (d) Yes Sir. As per the information provided by Jal Jeevan Mission (JJM), Department of Drinking Water & Sanitation, Ministry of Jal Shakti, the State Government of Kerala is remitting its State share of JJM. The State share from 2019-20 to 2024-25, as per the funding norms  prescribed  in  JJM  operational  guidelines,  is  Rs.  5,479.03  crore  and  expenditure incurred by the State during the corresponding period is Rs. 6,021.96 crore.

(e) & (f) Yes Sir. The State Government of Kerala vide memorandum dated 12.11.2024 has requested the Union Government to increase the borrowing capacity of the State for paying the State share for JJM. A reply to the State Government from the appropriate level has been issued  vide  letter  dated  01.01.2025  mentioning  that  the  Government  of  Kerala  may  avail financial assistance under Part-I of SASCI 2024-25 for paying the State share of JJM.

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