The centre - state governments' tussle in the Supreme Court.

The Kerala government rejected the central government's conditional offer of additional borrowing  worth Rs.5,000 cr in this financial year as a one-time measure during the hearing at the Supreme Court. The court will now hear the state government's plea for being allotted Rs.10,000 cr.

At the hearing, the Additional Solicitor General informed the court that the Centre was ready to allow additional borrowing to the state under five stringent conditions viz. :-

   (a) The amount will be adjusted from the state's net borrowing ceiling for the first nine months in the

        next fiscal.

   (b) No adhoc borrowing will be allowed.

   (c) The state government should implement Plan B for resource mobilisation before the last quarter

        of 2024-'25 (Plan B was a budget announcement of the state government).

   (d) The consent for borrowing will be given only if the state government submits certain documents.

   (e) Also, the consent for borrowing for the first nine months will be issued on a quarterly basis. This

        would be for up to 25% of eligibility, arrived after deducting Rs.5,000 cr.

My take

Kerala is galloping toward a debt-trap on the same lines as Sri Lanka due to sloth, overspending, misgovernance, corruption and the government's inability to collect taxes and other dues that are rightly its. Another thing that needs to be observed is that, now, the state government is not talking about its dues because of GST! 

So, it's evident that the Kerala government's arguments need to be studied, by the court, for the authenticity of facts.

Tailpiece.

Got up at our usual time, the chores and was ready by 10.

Shaji, the curtain man from Kunnamkulam, had come to take measurements for the white lace curtains at 10. So did the PCI's Ranjoo for carrying out the quarterly servicing.

The maid was at work.

A quiet evening.