India News | Kerala Cabinet Recommends Governor to Convene Assembly

Thiruvananthapuram (Kerala) [India], January 5 (ANI): The Kerala Cabinet has decided to recommend to the Governor to convene the eighth session of the 15th Kerala Legislative Assembly from January 23.

A cabinet sub-committee has been responsible for preparing the governor's policy address speech draft.

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On Wednesday, the Kerala government decided to submit a petition to the Prime Minister on major central and state fiscal issues.

The decision was taken in the cabinet meeting on Wednesday. The petition is based on issues related to deviations from constitutional provisions. The important Central and State financial issues will be addressed in the letter.

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According to the press release of the Chief Minister's Office (CMO), the state government plans to ask the central government to restore the state government's borrowing limit to its pre-2017 status. Critical issues facing the state which are not in line with federal principles will be brought to the attention of the Prime Minister in the form of a petition.

In 2017, the central government decided to include the amount set aside in the public account in the state's public debt while calculating the state's self-borrowing limit. This was a misinterpretation of Article 293(3) of the Constitution, as per the statement of the CMO.

Accordingly, the central government has stipulated that the loans repaid by the state public sector companies-corporations and special purpose entities through the state budget or through the state tax/cess/any form of state revenue earmarked for them shall be considered as debt taken by the state while issuing consent letter for borrowing under Article 293(3) as per the release.

Loans taken by Public Sector Undertakings under the State Government on the back of Government Guarantees are not direct liabilities of the State Government. They can only be considered contingent liabilities of the state. Some Special Purpose Institutions under the State Government like KIFBI and KSSP. All borrowings are now included in the public debt of the State Government by the Central Government. But it is not applicable to loans taken by the Central Government Public Sector Undertakings and similar institutions.

This act is a violation of federal principles and is a hindrance to the development of the state as mentioned in the CMO's press release.

In this context, the state has requested the central government to re-examine the decision to include reserves and loans taken by state government-controlled entities in setting the state government's borrowing limit and restoring the pre-2017 status quo. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)