The Aryavarth Express
Agency(New Delhi): In a pivotal development, the Supreme Court has directed the central government to contemplate extending a one-time financial assistance package to the state of Kerala by the end of March to aid in navigating its current economic challenges. This suggestion came to light during a hearing where Kerala, represented by senior advocate Kapil Sibal, highlighted its urgent lawsuit against the Union over withheld funds, seeking an expedited review.
A bench, including justices Surya Kant and KV Viswanathan, acknowledged the state’s plea and slated it for a hearing the following Wednesday. The justices proposed that the Centre could adopt a more generous stance by offering Kerala a special one-time package, hinting at the possibility of implementing stricter financial regulations in future budgets to ensure fiscal discipline while addressing immediate concerns.
Additional Solicitor General N Venkataraman, representing the central government, pointed to the complex financial dynamics affecting Kerala, including issues with offsetting balances that have compounded the state’s fiscal pressures, leading to postponed fiscal consolidation efforts.
The Supreme Court, expressing its limitations in offering direct financial solutions, underscored the significance of addressing fiscal mismanagement at the state level, emphasizing its broader impact on the nation’s economic health. This stance was part of the Court’s observations amid a lawsuit initiated by Kerala, which accused the central government of overstepping its boundaries by imposing borrowing limits, thus infringing upon the state’s constitutionally granted fiscal autonomy.
The ongoing legal battle and the Supreme Court’s intervention highlight the tension between state rights and national economic stability, reflecting the complexities of federal financial management in India. The Court’s call for compromise and support suggests a pathway towards resolving the fiscal standoff, underscoring the intricate balance between ensuring national economic integrity and respecting state autonomy.
