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By imposing unfair restrictions on the borrowing capacity of Kerala, the Union government has denied about 15000 crore in a single stroke. The State may get into serious financial trouble in the near future, jeopardizing many of its activities. Curiously, the off-budget borrowings which the Union Government cites as a reason are not taken into account in the case of the Union Government itself. Meanwhile, another State ruled by the opposition, Rajasthan, is surging ahead amidst the ‘concerns’ of neo-liberal economists about giving subsidies. It seems getting money into people’s hands has worked wonders.

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