Centre dismisses Kerala’s request to borrow additional

The Centre declined the request of Kerala government to borrow an additional ₹19,370 crore in the current fiscal year in the discussions held with Union finance ministry officials in New Delhi on Friday, the state’s chief secretary V Venu said.
Officials from Kerala led by the chief secretary had met Union finance ministry officials in Delhi following the directions of the Supreme Court which advised both sides on March 6 to meet again and find a solution to the issue of the state’s financial dues. Kerala had petitioned the top court against the cap imposed by the Centre on the borrowing limit of the state.
“We had communicated both to the Centre and the Supreme Court about the unused fiscal space eligible to the state within its borrowing limit. In the talks we had today, we tried to seek a possible temporary arrangement. The Centre has taken the stand that it (such an arrangement) is not possible. They said they cannot agree to our request of an additional ₹19,370 crore over and above the ₹13,608 crore (eligible to us),” Venu told reporters.
The chief secretary said Kerala will go back to the top court and apprise it of the status of the talks with the Centre. “We will try to get a judgment from the court,” he said.
The Centre has told the top court that it will allow the state to borrow ₹13,608 crore for the time being which the state has agreed. The court had asked the union government to have a meaningful dialogue with the state government as it is an integral part of the union.
It also told the Centre not to put the withdrawal of the suit filed by Kerala as a precondition for allowing additional borrowing.