Page 2 - Net Borrowing Ceiling News Today

The State of Kerala has filed an original suit in the Supreme Court against the Union of India for imposing limits on the States borrowing capacity. The State Government has said that the Centre has...

Kerala government has filed an original suit before the Supreme Court alleging interference by the Centre with the finances of the State.The suit filed by the state government raises questions over the authority of the Union government to ...

Kerala is the second State to move the top court this year in relation to financial disputes with the Central government. It has argued that Centre's actions have the potential to damage the federal structure.

The plea said “Constitution bestows fiscal autonomy upon States to regulate its finances under various articles” and “States have been exercising these powers to prepare and manage their Budget, all these decades post-Independence”.

“Presently, there is no proposal to relax the existing terms for borrowing capacity of the State Governments including the Government of Kerala,” Sitharaman said in response to a question on whether the government is considering to relax borrowing terms for the state of Kerala.

The state government says that it is concerned about the state's fiscal constraints and that its situation would become more severe in 2023-24, with a shortfall of around Rs 8,400 crore in revenue deficit grants compared to last fiscal.