After Supreme Court nudge, Kerala delegation to meet Union Finance Minister to iron out disputes over finances, budgeting

The Kerala government and the Central government on Tuesday agreed to hold talks to iron out issues concerning finance and budgeting after the Supreme Court urged both the governments to talk and resolve the issues [State of Kerala vs Union of India]..A bench of Justices Surya Kant and KV Viswanathan made the suggestion while hearing a plea filed by the Kerala government which claimed that the Central government was unduly interfering with the State’s power to borrow and regulate its finances.The Court today observed that negotiations and talks between with the Central and Kerala government officials could aid in settling these disputes. "We are not asking for tinkering with fiscal policy and we know that you (Central government) cannot take decision only for one State. But we also think that you being the Union, the cordiality is one thing that will work for the country," the Court said when the matter was taken up this morning. .Representing the Central government, Attorney General R Venkataramani replied that he would get instructions by 2 PM in the afternoon. "These are the issues which can be sorted out (through) negotiation ... Of course, the Court will decide as the last arbiter," the Court clarified..When the matter was taken up in the afternoon, the Attorney General informed that the Central government was open to carrying out the Court's suggestion. "Suggestion which fell from the Court will be given due regard. Government is open for the meeting and I hope there is an open dialogue and whatever emerges will pave the way ahead," AG Venkataramani said. Senior Advocate Kapil Sibal who appeared for the Kerala government, accepted the Court's suggestion as well."Kerala delegation will fly tomorrow morning itself and the dialogue can start tomorrow itself ... There is a little urgency.. The Finance minister is presenting the budget," he added. .In its plea filed in December last year, the Kerala government has alleged that the Centre's decision to impose certain limits on the State's borrowings had led to an accumulation of unpaid dues and could result in a grave financial crisis..The Central government countered by claiming that Kerala's financial health is in dire straits due to substantial off-budget borrowings and a compromised fiscal edifice. It underscored that prudent public finance management is a national priority. If a State indulges in reckless borrowing to finance unproductive expenditure or poorly targeted subsidies, it will crowd out private borrowing from the market, the Central government added.The State of Kerala replied to this counter by stating that the Central government cannot assume extra-constitutional powers to bolster its public finance management credentials. It is the Union government that has a dismal record of reining in its own debt, the Pinarayi Vijayan government told the top court..When the matter was taken up today, the Court was prompt to ask whether there was scope for negotiations between the Central government and the Kerala government. "Cannot the finance secretary of the State can meet the Union Finance Minister?" asked Justice Kant asked. After both sides to the dispute agreed to engage in talks, the Supreme Court suggested that the Kerala government officials bring up its concerns regarding urgencies for funds in the meeting slated to be held later this week. The matter will be heard again next week after the meeting is held. "We will list on Tuesday ... The cooling effect of the weekend will be there," the Court orally remarked as the hearing drew to a close.