Finance Minister K.N. Balagopal has hailed the Supreme Court’s decision allowing Kerala to borrow ₹13,600 crores to clear “unmet arrears and immediate obligations” despite the Central government’s strident objection as a massive relief for the State.
Mr. Balagopal said on March 6 that Kerala had sought the Centre’s permission to borrow ₹26,000 crore. The Supreme Court rejected the Centre’s objections and allowed the State to borrow ₹13,600 crore in four instalments. He said Kerala would continue its legal battle for “fiscal federalism” in the apex court, adding that the Supreme Court decision “portended well” for the State.
Moreover, Mr. Balagopal said the apex court had upheld the “inalienable and democratic right” of individuals and entities, including States, to approach the court for relief.
