THIRUVANANTHAPURAM: Finance Minister KN Balagopal has said that borrowings of the Kerala Infrastructure Investment Fund Board (KIIFB) are on the basis of government guarantees and are therefore not direct liabilities of the state. They were only contingent liabilities particularly since KIIFB funds remunerative projects and generates its own income.
The explanation was in a statement tabled in the assembly. The statement said that the audit report reiterates last year’s observations which were rejected by the PAC and by the state assembly with regard to the borrowings of the KIIFB which is beingcategorised as “off-budget” borrowing by the state. CAG has also categorised the borrowings of Kerala Social Security Pension limited (KSSPL) as an “off-budget” debt liability of the government.