What is the dispute over Kerala's borrowing limit, according to the Centre's argument in the Supreme Court
The Centre argues that Kerala is trying to 'mask its failures' and there is no urgency in the matter of the borrowing limit.
The dispute over Kerala's borrowing limit, according to the Centre's argument, can be summarized as follows:
- The Centre claims that Kerala is attempting to mask its failures by seeking to increase its borrowing limit. It argues that the state government is using the COVID-19 pandemic as an excuse to access more funds rather than addressing its own economic mismanagement.
- The Centre remains unconvinced that there is an urgent need for Kerala to increase its borrowing limit. It contends that the state can utilize its existing resources more effectively rather than resorting to additional borrowing.
- The Centre argues that Kerala should focus on improving governance, revenue generation, and fiscal discipline instead of relying on increased borrowing. It believes that the state's current fiscal situation does not warrant a boost to its borrowing limit.
- The Centre also asserts that increasing Kerala's borrowing limit could set a precedent for other states to make similar demands, potentially creating a burden on the central government in the long run.
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