NEW DELHI: The Supreme Court has directed Kerala and the central government to discuss and resolve the dispute over financial issues. The two-judge bench chaired by Justice Suryakant took this stand while considering the petition filed by Kerala questioning the restrictions including the borrowing limit imposed by the Centre. Both sides said they are ready for talks. The result of the discussions should be conveyed on the 19th when the petition will be considered again.

A four-member team led by Finance Minister KN Balagopal from Kerala will reach Delhi on the day after to hold talks. The issue had led to a political war as Kerala and the Centre blamed each other and a strike was staged in Delhi under the leadership of the Chief Minister.

Saying that it knows that the economic policy cannot be changed for a state, the court told the Centre that a conciliatory attitude was practical. A solution should be found through dialogue and consultation. Justice Suryakant observed that both the Centre and Kerala have experienced officials and the court has full faith that a solution will be found. Justice KV Viswanathan, the Malayali judge of the two-member bench pointed out that this is cooperative federalism.

In the morning, the court opined that the state finance department secretary should hold a discussion with the Union finance minister. The case was heard again in the afternoon to express the position. Attorney General R Venkataramani said that Kerala was ready for an open discussion and that the resulting compromises would be taken forward. Kapil Sibal, appearing for the state, said that they would come for the discussion soon.

Main points to be discussed

1. Restriction on borrowing limit.
2. KIIFB loan included in the borrowing limit.
3. Reduction in central tax allocation.
4. Central grants are not received on time.
5. Cutting of revenue deficit grant.
6. 750 crore due in connection with UGC salary revision

Chief Principal Secretary to the Chief Minister in the team

THIRUVANANTHAPURAM: KM Abraham, Chief Principal Secretary to the Chief Minister, will also be in the team that will hold talks with the Central Government in Delhi on the day after.

The other two are Finance Department Principal Secretary Rabindra Kumar Agarwal and Advocate General K Gopalakrishna Kurup. The official team will leave for Delhi tomorrow. Finance Minister KN Balagopal will leave only tomorrow evening or on the day after morning as the Assembly is in session.