Constitutional power of the Central Government over State - The...

Constitutional power of the Central Government over State - The imposition of a Net Borrowing Ceiling on the state - The inclusion of State-Owned Enterprises in the borrowing restrictions - The adjustment of over-borrowing from previous fiscal years against the current year's borrowing limit - Significantly, the Supreme Court decided to refer these constitutional questions to a larger bench, acknowledging the lack of previous authoritative interpretation on Article 293 and recognizing the potential implications for the federal structure of governance in India. - On the matter of granting interim relief to the state, the Court applied the triple-test criteria: prima facie case, balance of convenience, and irreparable injury. The judgment concluded that the state failed to establish a compelling prima facie case, noting discrepancies in the claimed fiscal space for borrowing and highlighting the Union's arguments on over-utilization of borrowing limits.