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Attorney General R Venkataramani said that Kerala's financial health and debt situation have attracted adverse observations from successive Finance Commissions (12th, 14th and 15th).
Attorney General R Venkataramani said that Kerala’s financial health and debt situation have attracted adverse observations from successive Finance Commissions (12th, 14th and 15th) as well as the Comptroller and Auditor General of India (CAG).
He further said that Kerala is one of the most financially unhealthy states as its fiscal edifice has been diagnosed with several cracks. He made these remakrs in a note submitted before the Supreme Court. In response to Kerala government’s suit in Supreme Court, the Centre filed an affidavit.
The Supreme Court was informed by the national government that Kerala has been among the states with the worst financial conditions. The Attorney General for India filed a written note in the suit filed by Kerala Government. He said that the debt of states will have a great effect on the credit rating of the country.
The note has cited the 12th Finance Commission, CAG and RBI report to show the condition of the Kerala state finances. “Kerala is one of the States with the worst financial situations. Its fiscal edifice was diagnosed with several cracks for a some time.
Kerala was categorized by the 12th Finance Commission as one of the states with a worsening debt position in its assessment of the state’s financial status. The statement went on to state that it was reflected in the debt-to-GSDP ratio as well as the interest payment to revenue receipt ratio.
The RBI has also categorized Kerala among the five highly stressed States requiring urgent corrective measures, the Center said.
