TIWN
New Delhi, Dec 13 : Kerala government has filed an original suit before the Supreme Court alleging interference by the Centre with the finances of the State.
The suit filed by the state government raises questions over the authority of the Union government to interfere with the powers of the State to regulate its own finances under several provisions of the Constitution.
The plea alleged that the Union Ministry of Finance through issued letters in March 2023 and by amendments made to Section 4 of the Fiscal Responsibility and Budget Management Act seeks to interfere with the finances of the State by imposing a Net Borrowing Ceiling and by reducing the Net Borrowing Ceiling thereby including aspects into the “borrowing” of the State which, otherwise, are not “borrowings” as contemplated under Article 293 of the Constitution.
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