Unreasonable to limit borrowing, can’t meet expenses: EPS to PM
Chief Minister Edappadi on Monday urged the Centre to help the Tamil Nadu government by increasing additional borrowing limit beyond 3 per cent of GSDP due to significant shortfall in revenues following lockdown imposed in the wake of the COVID-19 pandemic.
migrator
Chennai
In a letter to Prime Minister Narendra Modi, Palaniswami said there are additional commitments for the State and opposed the idea of removing free power to farmers.“It is unreasonable to attach conditionalities for borrowings beyond 3 per cent of Gross State Domestic Product (GSDP). Aggressively pushing a reform agenda on which a consensus is yet to be developed, at a time when States have approached the Centre for additional borrowing out of sheer desperation, is not in keeping with the spirit of co-operative federalism,” the letter read. “Linking the Central government’s power under Article 293(3) of the Constitution to permit additional borrowing by the States to conditionalities, is unprecedented,” he said, noting that these are not grants from the Centre.
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