Representation to Prime Minister regarding issues between Centre and State on fiscal matters.
The cabinet has decided to submit a representation to the Prime Minister regarding differences between Centre and State on fiscal matters.

The Centre’s deviation from the Constitution on various fiscal matters concerning the Centre and States would be taken up in the representation.

The Centre will be urged to restore the state’s previous lending limit, which was existent before 2017. This and other important issues, which are against the spirit of federalism, being confronted by the state will be brought into the consideration of the Prime Minister, vide the representation.

The central government, while restricting the lending limit of the state in 2017 has decided to treat the balance brought forward in public accounts, as public debts. This was done by misinterpreting the article 293(3) of the Constitution.

Now, in accordance with the norms of the central government, the loans once taken by state public sector undertakings, corporations, special purpose vehicles and repaid through state budget or through state tax/cess/any type of state income, shall be considered as the loan taken by the respective state, due to the fact that such loans are taken vide statement of consent issued as per article 293(3).

But the loans taken on government guarantee by the state public sector undertakings are in fact not direct liabilities of the state governments. They are mere technical liabilities of states. Though the Centre has treated the loans taken by the special purpose vehicles (SPVs) such as KIIFB, KSSP etc as the state public debt, the norms are not made applicable to similar loans taken by the central public sector undertakings and such other institutions promoted by the Centre. Such stances, which is against the federal principles pose as hurdles before the development prospects of states.

It is under these circumstances, the decision was made to submit such an appeal to the Centre urging to review the decision taken to treat the balance brought forward in public accounts and the loans taken by state government undertakings as public debts, as well as requesting to restore the state’s previous lending limit in the rate existent before 2017. ,

Financial assistance
It was decided to sanction compensation to the heirs of Binu Soman, who died after getting drowned in Manimalayaar while conducting mock exercise on 29th December 2022 at Kalluppara village, Pathanamthitta district. Rs. 4 lakhs will be sanctioned from the State Disaster Response Fund to his family.

Reappointment
It was decided to give reappointment to Adv. K. Dineshkumar up to 29/05/2024 who has completed three years as the District Government Pleader, Kasargode.