CAG slams Kerala govt, says borrowing through KIIFB has increased state's liability
The Comptroller and Auditor General (CAG) report stated that the state's borrowing through KIIFB has increased the liability of the Kerala government.
FollowThiruvananthapuram: A report tabled by the Comptroller and Auditor General (CAG) in the Assembly has criticised the state-owned Kerala Industrial Infrastructure Fund Board (KIIFB). The report stated that the state's borrowing through KIIFB has increased the liability of the government. It rejected the state's claim that KIIFB loan is not a liability to the government.
The CAG report mentioned about KIIFB borrowings for the financial year 2021-22.
The CAG report stated that Rs 11206.49 crore arrears of the pension company is also an additional liability of the government. KIIFB has no revenue of its own and it will not be able to get away with paying off the debt from the revenues through the budget. Government responsibilities were diminished by unreported extra-budgetary borrowing, says the report. The CAG report also said that the financial resources were made beyond the control of the legislature.
The state's debt is increasing, according to the CAG report. When the revenue income increased by 19.49 per cent, the revenue expenditure also increased. There is criticism in the report that 19.98 percent of the revenue income is used to pay interest.
The CAG report states that there were significant anomalies in the distribution of land as well. The undeserving received the land. There was no charge for the market price. The allotted land was even used for commercial purposes. The government has suffered significant financial losses as a result of late lease and rent extensions. To stop the unauthorised selling of leasehold land, nothing was done. There was no implementation of the idea to make lease registration mandatory. The CAG report further claims that a loss of Rs 29 crore resulted from the waiver of rent for two clubs in the capital.
