CM Pinarayi okays decision to move SC over union govt’s ‘unfavourable economic policies’

Thiruvananthapuram: Chief minister Pinarayi Vijayan has signed the file seeking permission to approach the Supreme Court against the union government’s ‘unfavourable economic policies towards Kerala’. Senior advocate Kapil Sibal is likely to represent Kerala in the Supreme Court.

The legal action aims to challenge the union government’s decision to cut the state's credit limit and alter the definitions of debt. The union government argues that borrowings of companies like Kerala Infrastructure Investment Fund Board and Kerala Social Security Pension Ltd. (KSSPL) and treasury deposits are part of the state's liabilities. Kerala argues such policies are unconstitutional and unfairly imposed on the state. Union Minister of State for Finance, Pankaj Chaudhary, informed the Lok Sabha that there are no plans to increase Kerala's credit limit.

To prepare for the legal action, the government sought advice from former Attorney General KK Venugopal and the Advocate General. They gave favourable recommendations. The responsibility for handling the legal proceedings lies with the principal secretary to the chief minister, Dr KM Abraham, and finance secretary, Sanjay Kaul.

Priorities

Amid discussions on legal measures, the state government is actively exploring options for emergency relief to address the ongoing financial crisis. The state's special representative in Delhi, KV Thomas is in charge of this.

Prioritising essential expenditures, Dearness Allowance (DA) payments for government employees have been stalled, with five instalments outstanding. As Onam approaches, the estimated expenditure, including salaries and pensions, may reach Rs 8,000 cr. Besides, only one month's social security pension can be disbursed during the festive season, whereas traditionally, two instalments are provided.