Kerala Finance Minister Thomas Isaac has said that the Centre has not given Kerala the money sought to rebuild the state. Moreover, the state is also not allowed to raise tax and money from other countries.
Kerala did not know what to do, he said.
The state requires at least Rs 60 billion for revenue expenditure towards relief, compensation, repair and maintenance.
"Centre will hardly foot the bill. Do not have independent taxation power. Cannot accept support from countries.Cannot borrow for revenue exp. Any advice what’s to be done?", tweeted Isaac.
Kerala requires at least ₹6000 crores for revenue exp. towards Relief,compensation,repair and maintenance. Centre will hardly foot the bill. Do not have independent taxation power. Cannot accept support from countries.Cannot borrow for revenue exp. Any advice what’s to be done?— Thomas Isaac (@drthomasisaac) September 14, 2018
Kerala, which faced one of its worst floods in over a century, had asked the Centre for a financial aid of Rs 22 billion for rehabilitation work, but the Centre has granted only Rs 6 billion.
The state had estimated that it would require over Rs 200 billion to rebuild.
As of August, Isaac said, the contributions to the Chief Minister's Distress Relief Fund had crossed Rs 10 billion and he expected it to cross Rs 20 billion.
Last month, Kerala Assembly had adopted a unanimous resolution appealing for greater central aid and sanction for accepting aid from foreign countries and multilateral agencies for relief and reconstruction.