Thiruvananthapuram: The latest report by the Comptroller and Auditor General (CAG) has dealt a significant blow to the arguments put forth by the state government regarding its borrowing practices. Submitted to the assembly, the report contains damning allegations against the government, particularly regarding the Kerala Infrastructure Investment Fund Board (KIIFB).
Contrary to the state government’s assertions that borrowing through the Kerala Infrastructure Investment Fund Board (KIIFB) is not considered off-budget borrowing, the report states that such borrowing significantly adds to the government’s liability. Additionally, the report dismisses the claim that KIIFB loans do not contribute to the government’s liability.
For the financial year 2021-22, the report highlights a concerning trend of escalating debt within the state. While revenue income saw a growth of 19.49 percent, revenue expenditure doubled, with nearly 20 percentage (19.98%) of revenue income being allocated solely for interest payments.
Moreover, the CAG report pointed out serious irregularities in land registration processes, revealing instances where land was registered to undeserving individuals without even charging the market price. Despite the commercial use of this land, the government remained passive and did not intervene.
The report also exposes how the government incurred a loss of Rs 29 crore by waiving the lease amount for two clubs in the capital city. government’s evasion from financial responsibilities by concealing off-budgetary borrowing is also scrutinized in the report. It further criticizes the government for its failure to implement instructions regarding the mandatory registration of lease amounts.
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