New Delhi: Relief for Kerala in financial crisis. The Center has given permission to the Kerala government to borrow 13,600 crores. The central government informed the Supreme Court during the hearing of the petition filed by Kerala against the Centre’s decision to cut the borrowing limit. The petition was heard by a bench comprising justices Suryakant and KV Viswanathan.
In the petition, Kerala sought an order to grant permission to borrow 26,000 crores to solve the financial crisis in the state. 13,600 crore has been approved by the court. The court also directed the central government and Kerala to negotiate and reach an agreement to borrow the remaining amount.
Earlier, the central government had expressed its displeasure over the filing of a petition in the Supreme Court during the discussion led by the state finance minister. If the petition in the Supreme Court is withdrawn, permission to borrow has also been put forward. The Supreme Court directed to change the clause.
Economic crisis is severe in Kerala. After two more weeks, no loan can be taken this financial year. Therefore, Kerala has asked to be allowed to take a loan of 15,000 crores more. In this regard, the court has directed the Center and Kerala to hold a discussion and announce the decision this evening.
The Supreme Court pointed out that if there is any financial problem, the Center should intervene to solve it. The Center argued that a state should not borrow to the extent that it upsets the financial condition of all other states. The total budget of Kerala is 1,84,000 crores. The central government also argued that Kerala’s income is only 90,000 crores.
