Kerala Govt To Move SC Against Slashing Of Its Borrowing Limit By Centre: Finance Minister Balagopal

The Kerala government on Monday said it has decided to move the Supreme Court against the alleged cutting down of its borrowing limit by the Centre and said the state should get what it is entitled to under the law.
    
The decision to approach the Supreme Court on the matter was announced by Kerala Finance Minister K N Balagopal during a press meeting held during the day.
    
The minister said that after the state's borrowing limit was cut by half, it had passed a resolution against the same in the Assembly and thereafter, a cabinet decision was taken to send a letter to the Centre.
    
"Subsequently, the Chief Minister sent a letter to the Prime Minister regarding the issue and the response we received was not favourable. Hence, we have decided to move forward legally.
    
"We are in talks with various Supreme Court lawyers on how to move forward with it and soon the necessary steps would be taken," he said.
    
In May, Balagopal had said Kerala was expecting Rs 32,442 crore when the Centre had cut down the borrowing limit from 3.5 per cent to 3 per cent.
    
But a recent letter from the central government has put the borrowing limit to Rs 15,390 crore, which is half of what Kerala is entitled to borrow, he had alleged and had accused the Centre of "targeting" the state.
    
"The move is part of the Union government's political vendetta," he had claimed.