Legal victory achieved by Kerala

The borrowing limit case between Kerala and the Centre in the Supreme Court is going to become a lesson for law students in the future. The Centre could have resolved this without being dragged into the case. They were not ready for that. Instead, the ministers, including the Union Finance Minister, presented figures to show that the Centre gave Kerala more than what it can give. However, the finance minister of the state presented figures contrary to this through the media. This led to a situation where common people could not tell who was telling the truth. Kerala, which was reeling under financial crisis, had no other option but to approach the Supreme Court.

This was the first time in India's history that a state approached the court against the Centre to raise the borrowing limit. The Centre placed a strange argument in the Supreme Court by saying that it would allow the state to borrow Rs 13,608 crore if it withdraws the case. One thing even a common citizen can understand from this is that Kerala is entitled to borrow that amount. If Kerala is not entitled to borrow that amount, shouldn't the Centre have pointed it out in the Supreme Court? Kerala did not ask for fresh financial assistance from the Centre. It only raised the demand to increase the borrowing limit. Top officials of the Finance Department at the Centre denied permission for this citing technical hurdles.

Usually, when such disputes arise between the states and the Centre at the bureaucratic level, it is customary for the central and state ministers to meet and resolve them. Otherwise, the high-level team headed by the Chief Minister would meet the Prime Minister in person and inform him of the seriousness of the matter and with the intervention of the Prime Minister, the problem would be temporarily resolved in favour of the states. Instead, the Centre went on to make controversial statements based on its political difference with the state government. Kerala approached the Supreme Court as it had no other option. The chief minister and the finance minister of the state had to face various criticisms for it. However, it is clear from the decision of the Supreme Court that Kerala's decision to approach the court was hundred percent correct.

This is also a political victory for Kerala against the Centre. The Supreme Court has said that the Center and Kerala should hold talks about borrowing more money. The court also directed that there should be no controversial statements from either side in the meantime. It is advisable that this issue, which can be solved in a day by the top officers, should not be dragged to the court once again. At the same time, Kerala should take the necessary steps to be more disciplined in financial management. Kerala needs to find ways to find new sources of revenue without increasing the tax burden on the people.