New Delhi: The central government may allocate 5000 crores considering the Supreme Court’s borrowing limit. But the money will be given with conditions. But the amount is not enough and Kerala requested in the Supreme Court that at least 10,000 crore rupees be allowed to borrow. The Center clarified its position on Kerala’s petition to release the claimed central funds.
Additional Solicitor General Venkataraman, appearing for the central government, informed the court that this amount will be deducted from the loan limit for the first nine months of the next financial year.
This amount is allowed because the Supreme Court said. Only 21,664 crores can be sanctioned for the first nine months. Of this amount, if 15,000 crore is paid in advance, only 6,664 crore remains. It will be very difficult for the state government to manage the remaining period with this amount. The central government argued that this would cause hardship to the people of Kerala.
However, the state government also argued that the Centre’s stance is infringing Kerala’s right to borrow. The Center intervenes to control the expenditure of the State. Kerala also pointed out that this is against federal principles. Justice Suryakant asked whether the Center would buy the Rs 5,000 crore as an interim relief.
The Center opined that the state government should find a way to solve the financial crisis. The central government has the same stand with all the states on the issue of credit limit. The Additional Solicitor General said that the Center has not shown any discrimination in this. A bench comprising Justice Suryakant and Justice KV Viswanathan considered the matter. Yesterday, the Supreme Court had directed that the central government should announce its position on granting relaxation in the loan limit at 10.30 am today.
