Comptroller and Auditor General (CAG) flagged a ₹12,669.92 crore discrepancy in off-Budget borrowings tied to Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pension Ltd (KSSPL) for fiscal 2024-25. Report on State Finances laid it bare to Kerala Assembly Tuesday.
Kerala initially told Union government it planned to borrow ₹2,500 crore from KSSPL,none from KIIFB . But real borrowings hit ₹8,089.92 crore from KIIFB and ₹5,563.09 crore from KSSPL,totaling ₹13,653.01 crore . Only ₹983.09 crore flagged was KSSPL's share.
CAG's document check showed this gap while seeking approval for next fiscal's loans,2025-26 . Audit warned of murky off-Budget borrowing reports,urging Kerala to disclose details in its Budget and inform Union government.
Findings land as Congress-led United Democratic Front (UDF) eyes KIIFB reform after Communist Party of India (Marxist)-led Left Democratic Front's rule. June 4,Chief Minister V.D. Satheesan pushed a White Paper in Assembly,calling for KIIFB overhaul,saying its core principles are compromised.
CAG's report dismissed state’s claim that KIIFB and KSSPL borrowings are just “contingent liabilities”,not direct state debt. Auditor stressed that state's funds are propping up these entities,who lack revenue to cover debt.
CAG noted,“Discrepancies in reporting of off-Budget borrowings to Government of India while seeking consent for raising market borrowings is another serious transparency concern noted by audit.” How will Kerala tackle this financial governance issue?…
