New Delhi: Relief for Kerala in the suit petition filed in relation to borrowing. The state is eligible to borrow Rs 13,608 crore before the end of this financial year on March 31. The Supreme Court directed the Center to give permission to the state government to borrow this amount immediately.
The central stand was that the state can be authorized to take this amount only if the petition filed by the state in the Supreme Court is withdrawn. But the Supreme Court criticized this. The court also directed Kerala and the Center to discuss borrowing the additional amount.
Kerala has filed the suit alleging that the Center is squeezing finances by setting limits on borrowing.
In the days before the case was considered, the Supreme Court reiterated its stand that the matter should be resolved amicably by mutual discussion. The bench headed by Justice Suryakant also pointed out the limitations of the Supreme Court’s intervention in financial matters.
