Finance Minister K.N. Balagopal said on Tuesday that he was happy that Kerala’s position on the financial standoff with the Centre was gaining acceptance.
Mr. Balagopal was responding to Tuesday’s development where the Supreme Court urged the Centre to consider giving the State a one-time package for tackling its financial crisis.
The Finance Minister declined to comment further on the matter as it was still under the consideration of the court. But he observed that the court has noted that the issues raised by the State do deserve consideration. “It is now generally accepted that there is substance in what Kerala has been saying,” he said.
On March 6, the Supreme Court had allowed the State to borrow ₹13,608 crore after the first round of talks between the State and the Centre held on February 15 proved inconclusive. At the second round of secretary-level talks held on March 8, the Centre had dismissed the State’s request to borrow an additional ₹ 19,370 crore.
Mired in a financial crisis, the State government had struggled to pay the salary and pension on March 1. The social security pensions have been in arrears since September 2023, but the government issued orders for releasing one pending instalment on March 15.
Talking to reporters here on Tuesday, Mr. Balagopal reiterated the State’s grievance regarding the reduction of the State’s share from the divisible pool from 3.85% under the 10th finance Commission to 1.92% under the 15th Commission. He pointed out that the State would scarcely face a crisis if it received its due share of taxes and grants.
