Kerala-Centre Talks on Fiscal Federalism Stalemate | PTI
By Rediff Money Desk, NEWDELHI Feb 15, 2024 22:32
Kerala Finance Minister KN Balagopal says no breakthrough in talks with the Centre on fiscal federalism, leaving the Supreme Court case unresolved. Read more.
New Delhi, Feb 15 (PTI) Kerala Finance Minister KN Balagopal on Thursday said there was no "breakthrough" in the meeting between officials of the state and the Centre over the issues of fiscal federalism.
The meeting was convened in the national capital following the Supreme Court's suggestion during a hearing of the petition filed by the Kerala government accusing the Centre of interfering in the exercise of its "exclusive, autonomous and plenary powers" to regulate the state's finances by imposing a ceiling on net borrowing.
A four-member group, headed by Balagopal, held a meeting with central government officials, including the Union Finance Secretary T V Somanathan.
"There was no positive outcome at today's meeting... there was no breakthrough. We submitted the most feasible options (to the Centre)," Balagopal said at a press briefing here.
At the briefing, Balagopal said the case is about fiscal federalism and the main issues were not resolved at today's meeting. "The discussions were not successful."
From the meeting, Balagopal said, it appears that the ongoing case is seen as a hindrance in discussing the important issues raised by the state.
On Friday, the secretaries from the state and the Centre will discuss certain accounting issues related to the state's demands, he added.
Apart from Balagopal, other members of the group are Chief Principal Secretary to the Chief Minister KM Abraham, Finance Principal Secretary Rabindra Kumar Aggarwal and Advocate General K Gopalakrishna Kurup.
From the Centre's side, apart from Somanathan, Additional Solicitor General N Venkatraman, Additional Secretary Sajjan Singh Yadav, and Joint Secretary Amit Singh Negi were present in the meeting.
On February 13, the Centre told the apex court that it is open to discussions with Kerala to resolve the dispute.
In the original suit filed under Article 131, the Kerala government said the Constitution bestows fiscal autonomy upon states to regulate their finances under various articles, and the borrowing limits are regulated by state legislation.
Under Article 131, the Supreme Court has the right to settle disputes between the Centre and states or between states.
The ruling Left Democratic Front (LDF) in Kerala has been raising concerns over the BJP-led central government's approach towards states.
On February 8, leaders and lawmakers from the LDF, led by Chief Minister Pinarayi Vijayan, staged a protest against the Union government in the national capital.
Vijayan has accused the central government of not giving states their due share of taxes, and using governors in opposition-ruled states to disrupt the functioning of the governments.
The meeting was convened in the national capital following the Supreme Court's suggestion during a hearing of the petition filed by the Kerala government accusing the Centre of interfering in the exercise of its "exclusive, autonomous and plenary powers" to regulate the state's finances by imposing a ceiling on net borrowing.
A four-member group, headed by Balagopal, held a meeting with central government officials, including the Union Finance Secretary T V Somanathan.
"There was no positive outcome at today's meeting... there was no breakthrough. We submitted the most feasible options (to the Centre)," Balagopal said at a press briefing here.
At the briefing, Balagopal said the case is about fiscal federalism and the main issues were not resolved at today's meeting. "The discussions were not successful."
From the meeting, Balagopal said, it appears that the ongoing case is seen as a hindrance in discussing the important issues raised by the state.
On Friday, the secretaries from the state and the Centre will discuss certain accounting issues related to the state's demands, he added.
Apart from Balagopal, other members of the group are Chief Principal Secretary to the Chief Minister KM Abraham, Finance Principal Secretary Rabindra Kumar Aggarwal and Advocate General K Gopalakrishna Kurup.
From the Centre's side, apart from Somanathan, Additional Solicitor General N Venkatraman, Additional Secretary Sajjan Singh Yadav, and Joint Secretary Amit Singh Negi were present in the meeting.
On February 13, the Centre told the apex court that it is open to discussions with Kerala to resolve the dispute.
In the original suit filed under Article 131, the Kerala government said the Constitution bestows fiscal autonomy upon states to regulate their finances under various articles, and the borrowing limits are regulated by state legislation.
Under Article 131, the Supreme Court has the right to settle disputes between the Centre and states or between states.
The ruling Left Democratic Front (LDF) in Kerala has been raising concerns over the BJP-led central government's approach towards states.
On February 8, leaders and lawmakers from the LDF, led by Chief Minister Pinarayi Vijayan, staged a protest against the Union government in the national capital.
Vijayan has accused the central government of not giving states their due share of taxes, and using governors in opposition-ruled states to disrupt the functioning of the governments.
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
TODAY'S MOST TRADED COMPANIES
- Company Name
- Price
- Volume
- Kretto Syscon
- 1.02 (+ 4.08)
- 66881006
- Shree Securities
- 0.45 (+ 12.50)
- 60278969
- Mishtann Foods L
- 9.67 ( -1.73)
- 59217815
- Vodafone Idea L
- 7.87 ( -1.99)
- 45227161
- YES Bank Ltd.
- 21.21 ( -1.71)
- 26456481
MORE NEWS
Dish TV Shareholders Reject Appointment of Ind...
Dish TV shareholders have rejected the proposal to appoint two independent directors,...
India Needs Investment in Roads, Ports, Energy:...
Veteran banker KV Kamath stresses the need for increased investment in roads, ports,...
IGI IPO: Blackstone-Backed Gem Firm Raises Rs...
International Gemmological Institute (IGI) has raised Rs 1,900 crore from anchor...