KIIFB severely criticized in budget; Created financial imbalance in state

THIRUVANANTHAPURAM: The first budget of the V D Satheesan government severely criticized Kerala Infrastructure Investment Fund Board (KIIFB). The chief minister said the activities of KIIFB have created a financial imbalance in the state and that an expert committee will be appointed to study KIIFB. The chief minister's criticism was made by pointing out the figures in the White Paper.

‘This government has a loan repayment obligation of KIIFB’s 21000 crores and an obligation to find money for its projects costing Rs 35000 crores. KIIFB takes off-budget borrowing loans at a higher rate than the loans taken by the government. This is causing the state's loan and debt to increase beyond the permissible limit and causing the state's financial imbalance. Taking these matters into account, steps will be taken to comprehensively reform the present working methods of KIIFB,' said the chief minister.