The Kerala government has finally ceased resistance to the Centre’s ultimatum demanding refund of the price of rice, which was allocated as relief during the Kerala floods in August 2018.
The Central government had given an ultimatum to Kerala to pay Rs 205.81 crore immediately. If the state failed to return, the amount will be deducted from next year’s State Disaster Response Fund (SDRF). Following this, Chief Minister Pinarayi Vijayan directed the government to settle the amount immediately.
The ultimatum by the Centre is a huge blow to the state government as it is already reeling under severe financial crisis.