Poor state administration causes Kerala's financial crisis: Centre to SC

In a recently submitted note to the Supreme Court, the Centre levied grave accusations against the Kerala government regarding its governance issues. 1) Kerala Finance Minister KN Balagopal. Photo: Manorama, 2) Union Finance Minister Nirmala Sitharaman. Photo: PTI.

New Delhi: The Union government, in a recently submitted note to the Supreme Court, criticised Kerala's ongoing financial crisis as the result of administrative failures of the state government, 

The friction arose after Kerala approached the apex court challenging the Centre's decision to reduce the state's borrowing limit. The state urged the court to review the petition before the presentation of the Kerala budget for the financial year 2024-25, which is scheduled to take place in the state legislative assembly on February 5.

In its note to the Supreme Court, the Centre claimed that despite the constraints, it had allocated more funds to Kerala than recommended by the Finance Commission and that the fiscal aid was provided without any due. Currently, Kerala stands among the states bearing a heavy debt burden.

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