THIRUVANANTHAPURAM: The Supreme Court-prompted meeting between the representatives of state and Union governments on the dispute over restrictions on the borrowing limit failed to resolve the impasse on Thursday. Finance Minister KN Balagopal, who led the state delegation, said the discussion did not yield the desired result.
The meeting was held as per the direction of the Supreme Court, which is considering a petition filed by the Kerala government alleging Centre’s “illegal interference in the state’s finances and budgeting”. Speaking to reporters after the meeting, Balagopal said the central team refused to discuss some key issues citing the matter was being considered by the court.
The state delegation handed over a memorandum to the central team. “The meeting was neither positive nor did it yield any result. The only decision taken was to hold a secretary-level meeting to sort out the dispute over certain accounts,” the minister said.
Balagopal said the Union government took an unfair stand that important matters cannot be discussed because of the court case.
‘Centre did not respond positively to state’s issues’
Balagopal also raised concern whether the Centre would disrupt normal fund transfers in future citing the court case. Besides Balagopal and secretary-level officers of both governments, the meeting was attended by the additional solicitor general of India and Kerala’s advocate general.
Balagopal expressed disappointment over the cold response of the central team to a separate list of urgent and less-important matters. “These matters did not require policy decisions but some feasible proposals that could have been sorted out in the meeting. But they did not respond favourably,” he said.
“The Centre did not respond positively to the issues faced by the people of Kerala. We will report the development to the Supreme Court,” he said. Balagopal said he was unaware whether the Centre would effect any change in its policies due to the meeting.
The secretary-level meeting to be held on Friday will discuss certain disputes regarding the accounts and calculation of funds based on the GSDP, he added.