THIRUVANANTHAPURAM : Once again, the Kerala government will move the Supreme Court against the Union government as the latter has rejected the demand for borrowings worth Rs 19,370 crore, in addition to the Rs 13,608 crore ordered by the Supreme Court.
The talks between the Union and state governments on the issue of additional borrowing space were held in Delhi on Friday as directed by the SC, which is hearing a petition filed by the state government challenging the Centre’s stand.
Chief Secretary V Venu, who led the Kerala delegation, told reporters that the Union finance secretary did not agree with the state’s demand. Talking to the media in Delhi, Venu said the reasons for seeking additional borrowing were clearly mentioned before the court. However the Union finance secretary did not agree to the demand, he said.
According to the state government, the Centre’s calculation on the eligible borrowing space for the state was wrong. This includes the miscalculation of the funds parked in the public account, which was adjusted from the net borrowing ceiling.
Sources from the state government pointed out that Kerala was eligible for additional borrowing worth Rs 19,370 crore. “Our request to the Union government was to rectify an error in the calculation of the borrowing space allocated to Kerala. The state has accepted the calculation based on principles endorsed by the Union government. However, it was discovered that the borrowing space allotted to the state was erroneously reduced by the Centre. The request from the state government was to rectify this mistake,” said an official.
At its hearing on Wednesday, the SC asked both the governments to resolve the issue through dialogue. The court asked the Centre to give sanction for borrowing worth Rs 13,608 crore, which was withheld due to the court case. The state government, however, told the court that the amount was insufficient and at least Rs 15,000 crore more was required to meet the immediate demands.
Now, the state government will again approach the Supreme Court to intimate about outcome of the discussion with the Union government.