'Worst financial management in the country'; Central gov silences Kerala in Supreme Court

NEW DELHI: The central government in a no-holds-barred attack on Kerala in the Supreme Court critiqued the southern state for having one of the worst financial management in the country.

In a 46-page note submitted to the Supreme Court through the Advocate General, the central government blamed the state administration's failures for Kerala’s economic woes.

The central government has clarified in the court about not increasing the borrowing limit for the state and said ample financial assistance has been provided hitherto as per the suggestion from the financial commission.

Kerala is now on par with Punjab and Bengal, for having one of the worst financial management in the country. The debt-to-GDP has risen to 39 percent in 2021-22. In 2018-19, it was 31 per cent. GST compensation, tax revenue and funds for centrally funded schemes have been provided to the state promptly, informed the Advocate General.

In addition, Rs 4000 crores were given to the energy sector in the last two financial years. The Central Government then held Kerala responsible for the financial misery the state is currently mired in.

Kerala filed a petition recently in the apex court challenging the central government’s decision to not raise the borrowing limit. The state urged the Supreme Court to review the petition minding the state budget presentation that is scheduled for February 5th.