LawLoveLegal

Kerala's Fiscal Autonomy in the Face of Central Oversight Introduction: The recent developments regarding the Central Government's decision to allow Kerala to borrow Rs 5,000 crores, subject to conditions, have stirred discussions both in legal circles and among policymakers. This move, highlighted in a recent Supreme Court hearing, brings to light the intricate dynamics between the Centre and the states, particularly concerning fiscal autonomy and financial management. Legal Aspect: The legal aspect of this issue revolves around constitutional provisions and existing laws governing the fiscal relationship between the Central Government and the states. Article 293 of the Constitution grants states the power to borrow on the security or guarantee of the Consolidated Fund of the State. However, the recent dispute between Kerala and the Centre stems from alleged interference by the latter in the former's financial matters. Centre's Assertion: The Centre's assertion tha...