THIRUVANANTHAPURAM: The Kerala government on Monday rejected the Union government’s proposal in the Supreme Court that the state would be given sanction for ‘additional’ borrowing worth Rs 11,731 crore if the petition against the Centre is withdrawn. The state refused claiming it had eligibility for about Rs 17,000 more.
The government argued that it already had undisputed eligibility to borrow Rs 11,731, even after the Centre’s revision of norms on borrowings. The state reiterated its demand for a sanction of Rs 26,000 crore. The SC has scheduled the next hearing on March 6 and 7. Meanwhile, the additional solicitor general handed over a note on the meeting held between the Centre and state governments.
The meeting was held on the SC’s direction to settle disputes on borrowing limit through dialogue. The Centre told the court that the state’s eligible borrowing limit for the current financial year was Rs 32,432 crore. It has already availed this and an additional sanction would be given for Rs 11,731 crore.