Kerala will approach the Supreme Court against the Central government’s decision to slash the State’s borrowing limit, Finance Minister K.N. Balagopal said here on Monday.
The State government is discussing the matter with senior lawyers, Mr. Balagopal said at a meet-the-press programme organised by the Kesari Memorial Journalists’ Trust.
There is no legal hurdle before the State in moving the Supreme Court on a matter concerning the constitutional rights of States. ‘‘Our stand is that the Centre is imposing needless curbs on the State’s borrowing space,’‘ he said. Mr. Balagopal said the Centre is ignoring the State’s grievances despite taking them up with the Union Finance Minister and the Prime Minister.
The space for open market borrowing is in the news with the Centre fixing it way lower than the ₹32,442 crore – equivalent to 3% of GSDP – projected by the State government, prompting the latter to accuse the Centre of trying to choke it financially.
‘’We should get what is legally our rightful share. I’m sure that is a sentiment shared by other States as well,’‘ he said, declaring the State’s intention to seek legal recourse in the matter.
In June, former Finance Minister T.M. Thomas Isaac indicated the State’s intention to approach the apex court on the matter, saying that the State’s fiscal rights have now emerged as an important political question.
Mr. Balagopal said the State government was examining the issues and disputes pertaining to the contributory pension scheme. He said he did not wish to comment in detail on the matter at a stage when the matter is being debated across the country.
