SC Reserves Order On Kerala Govt's Plea For Interim Relief In Tussle With Centre Over Financial Issues

 In a suit filed by the Kerala government, it asserted that the state government exercises the executive power granted to the Plaintiff State under Article 293 of the Constitution of India.

During the Supreme Court hearing regarding Kerala's suit on the ceiling of net borrowing, the Centre informed the bench on Thursday that the Kerala government had been overborrowing in recent years, indicating its financial situation

Source : PTI

The Supreme Court reserved its order on the plea filed by the Kerala government seeking interim relief in a suit against the Centre over financial issues on Friday. The order was reserved by a bench of justices Surya Kant and KV Viswanathan on the issue of interim relief. 

According to ANI, Supreme Court reserves order on Kerala government plea seeking interim relief in a suit filed by it against the Centre over financial issues.

Supreme Court reserves order on Kerala government plea seeking interim relief in a suit filed by it against the Centre over financial issues.

— ANI (@ANI) March 22, 2024

 

 

 

In a suit filed by the Kerala government, it asserted that the state government exercises the executive power granted to the Plaintiff State under Article 293 of the Constitution of India. This authority allows the state to borrow funds secured by or guaranteed by the Consolidated Fund of the State, in accordance with the fiscal autonomy guaranteed and enshrined in the Constitution.

 

Representing the Centre, Attorney General R Venkataramani stated that the Kerala Government's own act mandates them to manage their fiscal discipline. He further asserted that there is no possibility of any breach of Finance Commission recommendations, according to a report on ANI.

Meanwhile, during the Supreme Court hearing regarding Kerala's suit on the ceiling of net borrowing, the Centre informed the bench of Justices Surya Kant and K V Viswanathan on Thursday that the Kerala government had been overborrowing in recent years, indicating its financial situation. In response, the Kerala government maintained that its finances are "sustainable enough" to handle the overborrowings from previous years. The suit filed by Kerala accuses the Centre of encroaching on its "exclusive, autonomous, and plenary powers" to regulate state finances by imposing borrowing limits.