The Keralam govt has appointed a 5-member expert committee led by Sudha Pillai to restructure the KIIFB, with a three-month deadline. This follows UDF's 'White Paper' alleging KIIFB is a 'parallel government' causing a severe fiscal crisis.
The Keralam government has constituted a five-member expert committee to formulate a restructuring plan for the Kerala Infrastructure Investment Fund Board (KIIFB). Retired IAS officer Sudha Pillai will head the panel. The committee has been tasked with submitting its comprehensive recommendations to the state government within a period of three months.
Leader of Opposition VD Satheesan shared the development in a post on X. "Government of Keralam appoints a 5-member expert panel headed by Smt. Sudha Pillai, IAS (Rtd) to formulate a restructuring plan for KIIFB. The committee will submit its recommendations within three months," he said.
Opposition Alleges Mismanagement, Demands Audit
Earlier on June 5, asserting that the KIIFB has become a "symbol of gross mismanagement," Chief Minister Satheesan demanded a comprehensive forensic audit of the body, a day after the UDF government led by him presented a 'White Paper' on the state's fiscal health in the Assembly.
Satheesan alleged that KIIFB functions as a "parallel government" beyond the framework of checks and balances, accusing it of borrowing at exorbitant rates and burdening future generations with costly debt. "KIIFB has become a symbol of gross mismanagement and lack of accountability. It borrowed at exorbitant rates, burdening future generations with costly debt, while project allocations often appeared driven by political considerations rather than objective development priorities. Functioning as a parallel government beyond the normal framework of checks and balances, KIIFB warrants a comprehensive forensic audit to ensure transparency, accountability, and prudent use of public resources," Satheesan posted on X.
'White Paper' Details Deepening Fiscal Crisis
On June 4, the Keralam Chief Minister, who also holds the post of the Finance Minister, had presented, in the Legislative Assembly, a status report on the State's fiscal health. The document highlighted a deepening fiscal crisis in the state, pointing directly at the LDF government's reliance on off-budget borrowings through KIIFB.
The White Paper alleged that the State's debt has reached "alarming proportions" because KIIFB bypassed the Consolidated Fund of the State. It further claims that the high-interest rates on loans, including the controversial Masala Bonds, have created a long-term financial liability that the State's revenue cannot sustain.
"The government has turned KIIFB into an extra-constitutional body," the White Paper noted, adding that project selection was heavily skewed toward political strongholds rather than being based on a merit-driven development agenda.
The UDF leadership argued that while the government claims to be building infrastructure, the lack of transparency in KIIFB's accounts hides the true extent of Kerala's bankruptcy.
Status Report Quantifies Debt Burden
The 'Kerala's Fiscal Health: A Status Report' labelled Kerala Infrastructure Investment Fund Board (KIIFB) as a "parallel fiscal authority" that has created a Rs 56,000 crore financial obligation for the State. This includes Rs 21,000 crore in unmet loan liabilities and Rs 35,000 crore required for projects already in the pipeline.
The Status report, which was prepared by a committee chaired by former Cabinet Secretary K M Chandrasekhar, revealed that the State is grappling with a massive debt of Rs 5.07 lakh crore and inherited payment arrears totalling nearly Rs 48,733 crore. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)