THIRUVANANTHAPURAM: Finance Minister Thomas Isaac has responded to the reference on KIIFB in the CAG report on state finances for FY 18. The report had said that KIIFB disbursed only Rs 47.8 crore for two projects though it had sanctioned 10 projects worth Rs 4,951 crore.
The minister wondered whether there was anything unnatural if the DPR preparation of a project took one or two years. Can KIIFB approve all project proposals per se? he said in a Facebook post. Isaac took strong exception to the CAG observation on the NABARD loan to KIIFB.
The CAG had stated that the ‘off-budget borrowings amounting to Rs 100.80 crore add to liabilities of the state, but it was not captured in the finance accounts of the state.” Isaac said the debt liabilities of PSUs were never included in the state’s accounts. How can an off-budget loan be recorded in the budget? he said.