THIRUVANANTHAPURAM: Indicating that KIIFB roads will have user fee soon, Chief Minister Pinarayi Vijayan on Wednesday said that a user fee model of revenue generation will help KIIFB in loan repayment. The CM, however, did not reveal whether the board would implement it in near future.
Participating in the discussion on the state budget 2025-26 in the assembly, he said: “If KIIFB levies user fees, it will help in loan repayment on its own. Therefore, government grants can be avoided in a phased manner,” he said.
The state government held some consultations on revenue generation from KIIFB projects due to the discriminatory stand of the Centre against the SPV. “The Centre’s arguments can be defeated if KIIFB projects become revenue generating. It will also help avoid the adjustment of KIIFB loans in the net borrowing ceiling of the state,” he said.
The policy deviation by the Union government resulted in the inclusion of loans by KIIFB and similar institutions in the state’s market borrowing limit. It was against the legitimate expectation of the state. The move resulted in the state losing the right for an additional borrowing worth Rs 15,895.50 crore from 2022. Between 2016 and 2023, the total loss in borrowing space was Rs 1,07,513.09 crore.
The CM said he had sent letters to the prime minister and Union finance minister seeking the exclusion of KIIFB loans from the state government’s borrowing limit. But the centre did not take a favourable stand. Kerala Government then filed a suit in the Supreme Court as per Section 131 of the Constitution. The case is under consideration of the court.
“The Centre argued in the Supreme Court that KIIFB projects were non-profitable and similar agencies under it, like the NHAI, were income generating and were capable of loan repayment. But this is against facts. The NHAI gets only a small portion of its loan repayment from toll collection. The rest is met by open market borrowing and by way of grants. The SC found merit in Kerala’s arguments and referred the case to the Constitution Bench,” he said.
Additional budget announcements
Faceless adjudication sstem in GST department- Rs 3 crore
AC Shanmughadas Memorial Ayurvedic Child and Adolescent Care Centre - Rs 2 crore
Revival of Kamco - Rs 1 crore
State Horticulture Mission Management - Rs 1 crore
Digital Property Card programme - Rs 2 crore
Pattayam Mission - Rs 2 crore
Ayurveda park at Thrithala - Rs 2 crore
Revenue department’s e-literacy programme - Rs 1 crore
Shailaja, Satheesan spar over CM's post
THIRUVANANTHAPURAM: The assembly witnessed a war of words between former health Minister K K Shailaja and Leader of Opposition V D Satheesan. During the budget discussion, Shailaja referred to the alleged race for CM post in the Congress if the party comes to power next time.
“It shows the deterioration of the Congress. Why don’t you discuss people’s livelihood issues now?” she asked. Satheesan replied: “Shailaja teacher would be sad, because she made efforts to become the CM with the help of a PR agency. That’s why she missed a seat in the treasury bench this time.”
Assembly passes resolution seeking amendments to Govt Securities Act
THIRUVANANTHAPURAM: The assembly has passed a resolution requesting the Centre to make necessary amendments to the Government Securities Act 2006 to modernise and streamline the framework for the issuance and management of government securities in India. It would also result in the repealing of the Public Debt Act, 1944, which was seen as outdated and inadequate for the evolving financial system.