Kochi: Kerala on Wednesday rejected the Centre’s proposal to allow the state to borrow only Rs 5,000 crore against its requirement of over Rs 15,000 crore, media reports said.
Kerala said it needed at least Rs 10,000 crore to deal with acute financial problems faced by the state.
Presenting its proposal before the Supreme Court, the Centre said that it will impose conditions on Kerala for borrowing Rs 5,000 crore.
The Supreme Court posted the case for next hearing on March 21.
The centre expressed fear that allowing Kerala to borrow Rs 15,000 crores would make the financial situation worse in the state.
The Centre came out with the offer after the Apex Court yesterday suggested the Centre allow additional borrowing by the Kerala before March 31 as a one-time measure.
Expressing concerns over the state’s budget deficit, the Centre had last week refused Kerala permission to borrow Rs 19,351 crore.
Kerala’s original suit against the Union under Article 131 of the Constitution challenges the Union’s norms on borrowing limits.
Kerala rejects centre’s offer on borrowing
