Do not know why CAG has done it again: Kerala FM

Thiruvananthapuram, Nov 12 Kerala Finance Minister K.N. Balagopal on Friday expressed displeasure at the findings in the Comptroller and Auditor General of India's latest report on the state's finances, that was tabled in the Assembly on Thursday.

Balagopal was upset at the remarks of the CAG pertaining to the off-budget borrowings of the Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pension Ltd (KSSPL).

"Really do not know why they have done it, as all will remember that the Kerala Assembly in January this year passed a resolution against the CAG report (which termed the off-budget borrowings through KIIFB as unconstitutional)," said Balagopal.

"Let it be, the state government, organisations or any responsible agency as all have to function according to a set of prescribed rules and laws. It's really surprising, why they (CAG) have done it yet again," said Balagopal. In reply to a question if the assembly will again pass a resolution, he said it is not required.

The CAG report placed before the assembly on Thursday stated that off-budget borrowings, if unchecked could lead the state into a debt trap without the knowledge of the assembly.

Off-budget borrowings refer to the use of those financial resources by the government for meeting expenditure requirements in a particular year or years which are not reflected in the budget for that year, or those years, for seeking grant/appropriation.

The CAG report points out that KIIFB borrowed/raised Rs 5,036.61 crores from financial institutions till 2019-20 and paid interest amounting to Rs 353.21 crores till 2019-20.

The state BJP was quick to latch on to it whose president K. Surendran said it's high time that the Pinarayi Vijayan government apologises to the people of Kerala.

"Despite the CAG and the opposition in Kerala time and again pointing out that KIIFB will play spoilsport in the state, no action is forthcoming from the Vijayan government. The stage is such that even the babies who are going to be born in the state are going to carry the burden of the debts of the state. KIIFB is just a vehicle for the Vijayan government to engage in corruption as nothing of it needs to be accounted. It's time that the Vijayan government acts according to the directives of the CAG," said Surendran.

The KIIFB was established as the principal funding arm of the government of Kerala in 1999. Its objective is to channelize funds for critical and large public infrastructure projects in Kerala. It was during the first term of the Pinarayi Vijayan government that the then economist turned Finance Minister Thomas Isaac gave it a new face and began off-budget borrowings.