Kerala Has Been Overborrowing In Recent Years, Centre Tells Supreme Court
By : Vidya J S
The Kerala government has been overborrowing in recent years which indicates its financial situation, the Centre on Thursday told the Supreme Court which was hearing the state’s suit raising the issue of ceiling on net borrowing. The Kerala government maintained that its finances are “sustainable enough” to bear the overborrowings in the previous years. A bench of Justices Surya Kant and K V Viswanathan was hearing arguments on interim relief in a suit filed by the Kerala government accusing the Centre of interfering in the exercise of its “exclusive, autonomous and plenary powers” to regulate the state’s finances by imposing a ceiling on borrowing. Senior advocate Kapil Sibal, appearing for Kerala, said under the constitutional structure, the states have their budget and are entitled to manage their expenditure.
