The Kerala’s administration called the Centre’s position that the state could only borrow money if it dropped its lawsuit before the Supreme Court “very disappointing” and said it would undermine fiscal federalism.
State Finance Minister K N Balagopal told reporters here on Monday that the federal government has advised the Supreme Court that, should Kerala withdraw its appeal, it will allow the state to borrow up to Rs 12,000 crore on Monday alone.
He declared, “The fund is rightfully ours; the state government has filed the case in the Supreme Court for it.”
Balagopal continued, “The Union government’s position is extremely disappointing and will impact the state’s fiscal federalism and the day-to-day operations of the state government.”
Kapil Sibal, our attorney, pleaded on our behalf, saying that we were requesting the money that is legally due to us. In accordance with our constitutional rights, we have submitted the petition to obtain the sum. The minister continued, “They have urged us to withdraw our plea, and that amounts to unfairness.
Following the Supreme Court’s recommendation during a hearing of the Kerala government’s petition accusing the Centre of interfering in the exercise of its “exclusive, autonomous and plenary powers” to regulate the state’s finances by imposing a ceiling on net borrowing, a meeting was called for February 15 in the nation’s capital.
In response to a plea accusing the Centre of interfering with the state’s finances by placing a cap on net borrowing, the top court on Monday ordered the Kerala government to “mentally prepare itself” in case the court is unable to issue an interim ruling in its favour.
This is an actual financial maze. The bench stated, “Kerala, mentally prepare yourself that we may not be able to give an interim order. How much can a court interfere, that too by an interim order?” We are not subject matter experts. According to Sibal, Kerala has a claim of over Rs 24,000 crore and an entitlement of Rs 11,000 crore. However, the Centre wants the state government to dismiss the lawsuit before taking entitlement into account.
They are saying that before they will consider financing, we must first withdraw the lawsuit. Will we suffer consequences for suing to protect our financial rights? Asking Sibal.
The court has now ordered that the case be scheduled for March 6 and requested that the Union and Kerala governments continue to hold talks in order to settle the disagreement.
By- HHM