SC suggests Centre to be liberal on relaxing borrowing conditions to Kerala

Posted on:
Key Points

The Supreme Court on Tuesday asked the Centre to consider providing a one-time package to the Kerala government by March 31 to deal with financial issues facing the state...

The Kerala government, represented by senior advocate Kapil Sibal, mentioned its pending lawsuit against the central government for urgent hearing before a bench comprising justices Surya Kant and KV Viswanathan, saying that the Union was not releasing necessary funds...

Agreeing to list the plea of the state government for hearing on Wednesday, the bench said the Centre can be "slightly liberal and give a one-time package as a special case" to Kerala...

The apex court had 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...

In an original suit filed under Article 131, the Kerala government has said the Constitution bestows fiscal autonomy upon states to regulate their finances under various articles, and the borrowing limits are regulated by a state legislation...

You might be interested in

Centre must be concerned with fiscal mismanagement of states as it impacts nation's economy, says Supreme

06, Mar, 24

The 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.

Kerala one of the most financially unhealthy states: Centre to Supreme Court

07, Feb, 24

The Centre has accused Kerala of negatively impacting India's credit rating due to its state debt. The government warned that any state defaulting on debt servicing could create reputation issues and a domino effect, threatening India's financial stability.

Supreme Court puts Karnataka govt order scrapping Muslim quota on hold till May 9

25, Apr, 23

A bench of Justices KM Joseph and BV Nagarathna said the earlier regime of four percent quota to Muslims will continue to hold field till May 9.

Why SC refused Kerala relief on borrowing cap set by Centre but referred case to constitution bench

02, Apr, 24

The court observed that Kerala’s petition points to 'various questions of significant importance impacting the federal structure of governance as embedded in Constitution'.

Supreme Court seeks fresh status report on security measures, relief of people affected by violence in Manipur

17, May, 23

Centre and the State government told the top court that a status report has been filed and the situation had improved in the State

'It's a Union subject': Centre opposes Bihar government's caste-based survey

28, Aug, 23

The Centre recently moved the top court seeking permission to intervene in the ongoing hearing in the top court. Solicitor General Tushar Mehta submitted that the issue may have a ramification and the government should be allowed to file its response

MK Stalin backs Pinarayi Vijayan in protest against Centre over fund allocation

06, Feb, 24

Tamil 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, 23

Union 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.

‘Protect, rescue, rehabilitate’: Supreme Court takes note of Manipur violence

08, May, 23

The Supreme Court has directed the Centre and Manipur government to ensure all suitable arrangements and medical facilities at relief camps for the victims. | Latest News India

Delhi to choose chief secretary from central shortlist of 3: Supreme Court

24, Nov, 23

The bench asked the Centre to recommend three names and the Delhi government to choose one from them. The names will be shared after solicitor general Tushar Mehta, who appeared for the Centre, discusses them with the Centre.