State seeks cess on SGST, increased borrowing limit

State seeks cess on SGST, increased borrowing limit

News:

1. The Kerala government is looking forward to imposition of a 10% cess on State GST and rise in its borrowing limit from the present 3% to 4.5% of the Gross State Domestic Product (GSDP).

Important facts:

2. The purpose is to raise sufficient resources for the post-floods reconstruction challenges that Kerala faces.

3. The State would also launch a special lottery scheme to raise funds for the reconstruction challenges.

4. The State government would request the National Bank for Agriculture and Rural Development (NABARD) to implement long-term schemes for reconstruction of rain-battered infrastructure and revival of the agriculture and irrigation projects.

5. The Centre would also be urged to create a special Rs. 2,600-crore package under MGNREGS.

6. The State wished to submit before the Union a comprehensive rehabilitation proposal.

7. A moratorium on repayment of loans in the flood-hit areas was already in place and this was applicable to both commercial banks and cooperative banks.

8. The State also seeks to rise its borrowing limit to raise funds for post-floods reconstruction