K.N. Balagopal hails SC decision allowing Kerala to borrow ₹13,600 crore despite Centre’s objections

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.

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.

The Centre had pressed Kerala to drop the litigation as a precondition for negotiations. It had contended that litigation and parleying could not march in lockstep, he said.

“The Supreme Court has reaffirmed that nobody can limit the fundamental right of individuals and entities to seek legal recourse in courts of law”, he said.

Mr. Balagopal pointedly refrained from infusing politics into the Centre-State dispute. He noted that the apex court had counselled that political commentary should not imperil the ongoing Centre-State talks.

Mr. Balagopal said the court’s decision has significantly relieved the State. “It’s the February-March quarter, and we still face a fund shortage. The Supreme Court has removed a hurdle that impeded fiscal federalism”, Mr Balagopal said.