The remark came against the backdrop of the central government's austerity drive, forcing its minister to fly economy class and shun five-star hotels.
The bench made the observation while hearing a lawsuit by the Kerala's Aided Higher Secondary Teachers Association seeking the arrears of the part-time teachers of the government and aided schools.
Kerala counsel pleaded that the state was not able to implement its Aug 19, 2008, decision for the payment of arrears with retrospective effect from 1992 due to lack of funds.