The Comptroller and Auditor General's (CAG) latest audit report on State finances reiterates the observations on Kerala Infrastructure Investment Fund Board (KIIFB) borrowings that were earlier rejected by the Public Accounts Committee (PAC) and the Assembly, Finance Minister K.N. Balagopal has said.
The CAG's State finances audit report for the year ended March 2021 and Mr. Balagopal's observations on it were tabled in the Assembly on Wednesday. The Minister sought to defend the borrowings made through the KIIFB and Kerala Social Security Pension Ltd. (KSSPL), both of which have drawn criticism from the CAG for being ''off-budget borrowings'' that could plunge the State into a debt trap later on.
Mr. Balagopal said borrowings by the KIIFB were on the basis of government guarantees and were, therefore, not direct liabilities of the State, They were only ''contingent liabilities'' since the KIIFB also funded remunerative projects and generated its own income as well, according to him.
