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TN CM extends full support to Kerala on preserving fiscal federalism
Tamil Nadu CM Stalin supports Kerala CM Pinarayi Vijayan on preserving fiscal federalism; accuses Centre of misusing powers to restrict states' borrowing space under article 293 of the Constitution. Stalin appreciates Vijayan's efforts in highlighting Union Government's attempts to control deficit financing. He emphasizes the need to eliminate indirect control over state finances and asserts that public debt for financing state expenditure is within the purview of the State Legislature. Central government's misuse of powers has affected Tamil Nadu's borrowing space and constrained fiscal initiatives. Stalin stands in full support of Kerala's commitment to preserving fiscal federalism and offers cooperation in addressing this challenge.