"Encroaching on rights of...": Kerala Industries minister hits out at Centre over borrowing limit
Jan 24, 2024
Thiruvananthapuram (Kerala) [India], January 24 : Ahead of the interim Union Budget on February 1, Kerala Industries Minister P Rajeev lashed out at the central government over the latter's alleged interference in deciding the state's borrowing limit.
Rajeev highlighted two key issues, namely the alleged curtailment of the state's borrowing limit and disparities in the distribution of taxes collected by the Union Government.
Referring to legal provisions, Rajeev stated, "As per Article 293, in 2003, Kerala passed a bill to fix the debt limit of the state government. The government is working on the basis of this Act."
"But the Central Government is encroaching on the rights of the legislator and they have curtailed the borrowing limit of the State Government. This is a serious issue," he added.
The Minister further pointed out the distribution of taxes, where he claimed that the state was being penalised for its advancements and strong position in the service sector.
"The government is punishing us due to our advancement and good position in the service sector. This issue should be addressed promptly," he asserted.
Earlier in May last year, Kerala Chief Minister Pinarayi Vijayan alleged that the central government has been showing a sadistic attitude by cutting the borrowing limit of the state.
"Kerala is not a state with great wealth. The treasury of Kerala does not have much capacity. The central government seized the state's opportunities to generate its own income. An example is GST", the chief minister said.
