Relief for Kerala as Centre allows state to borrow Rs 13,600 crore

NEW DELHI: As a relief to Kerala, the Centre has allowed the state to borrow an additional amount of Rs 13,600 crore. Kerala sought permission to borrow Rs 26,000 crore. The case regarding this is still pending in the Supreme Court. Kerala has said that the amount suggested by the Centre is acceptable.

Meanwhile, advocate Kapil Sibal, who appeared for Kerala, argued in the Supreme Court that another Rs 15,000 crore would be needed. The court suggested that the Center and Kerala can negotiate for the remaining amount. The Centre also asked the Supreme Court not to interfere in the borrowing limit. The court clarified that it will take time to settle all the demands in Kerala's petition.

The Centre's argument is that the fiscal deficit of Kerala and the Centre cannot be compared. The Centre also defended the clause that Kerala should withdraw the petition, which was criticized by the Supreme Court. Kerala informed the court that the state is going through a serious financial crisis. The court directed to consider Kerala's financial crisis and pointed out that it is everyone's right to file a petition.