Increasing States’ Disputes with the Centre

The Supreme Court emphasized on the need for cooperation, not competition, between the Union and the states in handling requests for disaster relief.

Issues Raised by Tamil Nadu, Kerala, and Karnataka:

Tamil Nadu:

• Accused the Centre of neglect and delayed disaster relief funds of nearly ₹38,000 crore for cyclone and flood relief.

Kerala:

• Filed a unique lawsuit in the Supreme Court, criticizing the Centre for interfering with its net borrowing limit, which pushed the state towards a financial crisis.

Karnataka:

• Requested ₹18,171.44 crore from the National Disaster Response Fund for drought relief but faced silence from the Centre for six months.
• The state suffers from severe drought, affecting 223 of 236 taluks.
• Estimated crop damage cost ₹35,162.05 crore.
• Karnataka’s total financial request for drought relief includes amounts for crop loss, drinking water, and cattle care totaling ₹30,171.48 crore.

Constitutional and Legal Framework:

Borrowing Powers of States:

• Article 293 allows states to borrow within India, but they must not have outstanding loans from the Centre without its consent. The Centre can impose conditions on state borrowing.

Supreme Court’s Role:

• Article 131 grants the Supreme Court the authority to hear disputes directly between the Centre and one or more states.