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Centre Agrees to Hold Talks with Kerala on Borrowing Cap

NEW DELHI: The Centre informed the Supreme Court on Tuesday that it is willing to engage in a dialogue with the Kerala government to resolve the dispute over the borrowing ceiling imposed by the Centre. Attorney-General R. Venkataramani conveyed to the bench of Justice Surya Kant and Justice K.V. Viswanathan, "Let's keep it open without any conditions. There can be an open dialogue." This statement from the Attorney-General came after the apex court mentioned that the leaders at both the Centre and the state are experienced administrators capable of resolving the issue.

Senior advocate Kapil Sibal, representing the Kerala government, stated that the state government has also agreed to send a delegation to the national capital on Wednesday for talks with the Centre. Sibal said, "We will fly a delegation from Kerala tomorrow morning itself, and we can have a meeting tomorrow. Unfortunately, the Budget is being presented by the (state's) finance minister, so others will come."

The decision followed the top court's request to Venkataramani to inquire if the finance secretary of the state could meet the Union finance minister to negotiate and resolve the issue. The bench clarified that they were not seeking alterations to fiscal policy, acknowledging that the Centre cannot make decisions solely for one state. However, they emphasized the importance of cordiality for the benefit of the country.

The Attorney-General requested time until 2 pm to respond to the court's suggestion. Later, during the hearing, he informed the bench that the Centre has agreed to hold talks to address differences with the Kerala government. Subsequently, the court scheduled the matter for further hearing on February 19.

The court is currently examining an original suit filed by the Kerala government, accusing the Centre of interfering in the exercise of its "exclusive, autonomous, and plenary powers" to regulate the state's finances by imposing a ceiling on net borrowing.



( Source : Deccan Chronicle )
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