The Kerala government has announced its decision to approach the Supreme Court in response to the alleged reduction of its borrowing limit by the Centre. Kerala Finance Minister K N Balagopal revealed this during a press conference held earlier today. He explained that the state had passed a resolution against the halving of its borrowing limit in the Assembly and subsequently made a cabinet decision to send a letter to the Centre. However, the response received from the Prime Minister was unfavorable, prompting the decision to pursue legal action. Balagopal stated, “We are in talks with various Supreme Court lawyers on how to move forward with it, and soon the necessary steps would be taken.”
According to Balagopal, Kerala had initially anticipated receiving Rs 32,442 crore, but the central government’s recent letter reduced the borrowing limit to Rs 15,390 crore, which is only half of the state’s entitlement. He alleged that the Centre was specifically targeting Kerala and described the move as a result of the Union government’s “political vendetta.”
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