Palakkad :Minister AK Balan said the State is strapped with huge debt with huge possibility that at a point govt will not be able to continue paying salaries and pensions.
Kerala will borrow from the Centre in January to the limit possible, the minister added while speaking at the inauguration of a govt medical college hostel.
“Clothes that piled up in Gujarat post GST were send to Kerala at half price, hence Kerala gained next to nothing in taxes,: Balan cited.
The loss with GST implementation was brought to the attention of Finance Minister Thomas Issac and Principal Secretary in times of VAT, Balan said.
Explaining the GST disruption he said “The state was receiving a steady income, but with this new tax, there is no income now and state is being pushed into financial crisis,”.
MLA Shafi Parambil presided over the function.