Key Points
Kerala one of the most financially unhealthy states: Centre to Supreme Court..
The Centre has accused Kerala of negatively impacting India's credit rating due to its state debt..
The note further highlighted Kerala's financial distress due to mismanagement and stated that the Reserve Bank of India has categorised Kerala as one of the five highly stressed states requiring urgent corrective measures...
The increase in a state's debt servicing liabilities due to higher borrowing could result in reduced funds for development, leading to impoverishment and loss of state and national income, the note submitted by the Centre explains...
The Kerala Government has filed a suit claiming that the Centre has reduced its borrowing limit, potentially causing a severe financial crisis in the state..
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SC suggests Centre to be liberal on relaxing borrowing conditions to Kerala
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Supreme Court reserves order on Kerala's borrowing limit challenge
22, Mar, 24Both Kerala and the Union government urged the court to pass an interim order in the case before the conclusion of the current financial year on 31 March after several rounds of talks failed to yield an agreement.
Centre must be concerned with fiscal mismanagement of states as it impacts nation's economy, says Supreme
06, Mar, 24The apex court made the observation while it was hearing a suit filed by the Kerala government accusing the Union of India of interfering in the exercise of its exclusive, autonomous and plenary powers to regulate the state's finances by imposing a ceiling on borrowing.
HT interview: Governor adopting stand aimed at creating conflict, says Kerala CM
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MK Stalin backs Pinarayi Vijayan in protest against Centre over fund allocation
06, Feb, 24Tamil Nadu Chief Minister MK Stalin on Tuesday wrote a letter to his Kerala counterpart Pinarayi Vijayan stating that he extends full support towards the legal steps taken by the Kerala government against the Centre for allegedly squeezing the state financial.
No proposal to relax borrowing limits for Kerala, other states: Sitharaman
04, Dec, 23Union Finance Minister Nirmala Sitharaman has denied any proposal to relax the existing borrowing capacity terms for state governments, including Kerala, for 2023-24. Kerala has requested the Centre to allow an additional borrowing of one per cent of the Gross State Domestic Product (GSDP) over and above the fixed borrowing ceiling.