The state government is reported to borrow about Rs 2500 crore from the open market to meet the expenses of Onam festival.
About Rs 7000 crore is required for just providing salary and pension during Onam season.
The borrowing is within the limit allowed by the Centre. The funds are collected from banks through the debentures issued by the Reserve Bank and the amount has to be repaid in a period of ten years. Debentures of Rs 2500 crore are issued which will be auctioned on August 7.
Every year during the time of Ornam, the government borrows money as expense escalates immensely at this time.