Finance Minister K. N. Balagopal has denied that Kerala is in the midst of a severe financial crisis, but said the State could find itself in trouble once the Centre stops the Goods and Services Tax (GST) compensation after June.
Talking to reporters here on Saturday, Mr. Balagopal rejected reports that the payment of salaries and pensions would be affected due to the present financial situation.
''However, the GST compensation would be discontinued after June 30. If the State is denied what is due to it, it can seriously affect development activities,'' the Minister said.