By referring a case filed by Kerala challenging the limits imposed by the Union government on the States’ borrowing capacity to a five-judge Constitution Bench, the Supreme Court has recognised the relevance of the issue, CPI(M) State secretary M.V. Govindan has said.
He told the media in Kozhikode on (April 1) Monday that the Union government had been taking steps akin to imposing an economic embargo on the State. “In the financial year that ended on March 31, 2024, the Centre owes the State around ₹7,000 crore for executing Centrally-sponsored projects. The Union government recently released around ₹800 crore of its share for the paddy procurement scheme and another over ₹700 crore is pending. So far, the State government has been diverting the funds for other purposes for paddy procurement because of the delay in getting the Central share,” he pointed out.
Mr. Govindan said that the CPI(M) had organised various events involving its MLAs and Ministers in the State and in the national capital to highlight the issue. National leaders, including Delhi Chief Minister Arvind Kejriwal, attended it, he added.
