THIRUVANANTHAPURAM: Close on the heels of the Comptroller and Auditor General (CAG) cautioning that the borrowings made by Kerala Infrastructure Investment Fund Board (KIIFB) would land the state in a debt trap, Chief Minister Pinarayi Vijayan said a section of people with ‘sadist mentality’ was trying to destabilise the financial institution. He said such people do not want the state to progress but despite their efforts, the government will not back out from the development projects funded by KIIFB.
The chief minister was delivering the presidential address at the Chancellor’s Award presentation ceremony at the Raj Bhavan here on Tuesday. It may be noted that the first public reaction by the CM on the KIIFB audit issue was in the presence of Governor Arif Mohammed Khan. Though he did not name the CAG, the chief minister’s reference to ‘those who intend to defame KIIFB’ was seen as an indirect reference to the constitutional body that passed critical remarks against the financial institution.
In the State Finances Audit Report for the year ended March 2020, which was tabled in the assembly last week, the CAG observed that ‘off-budget’ borrowings made through entities such as KIIFB could substantially increase the state’s liabilities, leading it into a debt trap. The CAG also wanted the state government to divulge details of such borrowings in the budget.
Pinarayi reminded that the state’s financial situation was not robust and there were inadequacies. However, if the government shies away from strengthening sectors including education citing fund crunch, it would be a huge crime against the future generations. He added the state cannot carry out various developmental activities through budgetary allocation alone.
“We need to tread new paths to achieve our objectives. It was through the utilisation of state funds as well as money mobilised by KIIFB that we could strengthen our public education system. The benefits of it are widely visible,” Pinarayi said.
Oppn’s KIIFB allegations based on gossip: Fin Min
Pinarayi said KIIFB funds would be used to strengthen the higher education sector as well. “We need top-class faculty and the best infrastructure facilities in the higher education sector. Lab, library, hostel and other facilities should be ensured,” Pinarayi said while underscoring the need for KIIFB’s backing in strengthening institutions of higher learning.
Continuing his criticism against the Opposition for raising the KIIFB audit row, Finance Mini s ter K N Balagopal said on Tuesday that allegations on ‘special audit findings’ were based on gossip. “The government hasn’t even received the draft audit report. The assembly subject committee needs to examine the final report once it is submitted.
Before completing all these procedures, responsible persons like the Opposition leader are levelling criticism based on leaked information. They need to think whether this is proper,” Balagopal told reporters here. The special audit report, which is yet to be made public, is learnt to contain more stringent criticism against KIIFB.
LDF GOVT VS CAG
Nov 2020 The then finance minister slammed CAG for terming KIIFB an unconstitutional arrangement in the draft audit report
Jan 2021 Kerala assembly passed a resolution removing parts of the CAG report that contain criticism against KIIFB. Opposition UDF and BJP voted against the resolution
Nov 2021 The new financial audit report of CAG for 2019-20 tabled in the assembly retained almost all criticism in the previous year’s audit