Finance Minister K. N. Balagopal on Monday described as “positive” the Supreme Court decision to refer the State government’s suit on its borrowing limit to the Constitution Bench.
Mr. Balagopal, reacting to the Court decision, portrayed the Court decision as a vindication of the State’s stand. “The important point here is that the Court has held that the suit filed by Kerala is serious enough to be examined by the Constitutional Bench,” Mr. Balagopal said, speaking to reporters in Kollam.
The Court decision is an important event in Centre-State relations, especially in matters pertaining to federalism and finances, Mr. Balagopal said. It shows that there is indeed substance in the arguments made by the State government regarding federalism and fiscal matters.
“It is equally important that the Court has referred to the Constitutional Bench a suit which the Centre wanted to be summarily reject when it was filed,” he said.
On the Court declining the State’s plea for ₹ 10,000 crore as interim relief, Mr. Balagopal said it could be because the “pressing needs” for the month of March have been met.
The Finance Minister said that the State is optimistic about its prospects before the Constitutional Bench. “This is the first time in the history of Kerala and India that a subject of this nature is going to come up before the Constitutional Bench,” he said.
“We are hoping that it would prove helpful to other States as well. In fact, we are hoping that it would be helpful to the country itself. Because, India, that is Bharat, shall be a Union ‘of’ States. Not Union ‘and’ States. Only if there are States there is the Union,” he said.
According to Mr. Balagopal, Kerala’s stand is aimed at protecting the rights of the States, strengthening the Union and the States and the spirit of cooperative federalism.
