Thiruvananthapuram, June 4 Kerala Chief Minister V D Sathisan on Thursday criticized the previous LDF government, alleging that it had left behind huge liabilities, including SBI loans, amounting to… $5.07 million crores.
He also claimed that the stories were almost “created”. $He left 6000 crores in the exchequer to mislead the public.
In a scathing attack on the opposition CPI-led Left Democratic Front, the Prime Minister questioned why the amount was not used to settle some liabilities, such as those around $2000 Crores arrears from SupplyCo or payment of third tranche of funds to local bodies.
He also said that thousands of crores of DA and DR arrears of government employees and pensioners remained unpaid when the Left government stepped down.
“Why were some of these liabilities not settled using the amount reported to be available in the treasury? Instead, a story was created and spread on social media claiming that $There was Rs 6,000 crore in the exchequer to mislead the public. This is the financial situation in Kerala. There has to be a change in it.”
Referring to the Kerala Infrastructure Investment Fund Board, Sathisan said it has created one of the largest commitments across the world. $56,000 crore – which has now been transferred to the new government.
The Prime Minister said that when he was in the Opposition, he had repeatedly warned that IBI loans would eventually fall within the country’s borrowing limits, and that is exactly what happened.
He said previous LDF administrations had claimed that SBI would operate independently from the government, would not need funds from the state, and that its loans would not affect Kerala’s borrowing limit.
“However, thousands of crores collected as tax levy were given to the Indian Investment Bank of India. It borrowed huge amounts at very high interest rates with the sovereign guarantee of the state and its debts were eventually added to the borrowing limit of Kerala,” Sathisan said in the House during the vote of thanks debate on the governor’s policy speech.
“Moreover, IIB does not generate any revenue on its own. Therefore, its liabilities fall squarely on the government and now we are all burdened by it,” he added.
Sathisan said he had earlier advised the Left government to ensure that at least 50 per cent of the projects undertaken by KIIFB generate revenue, but his suggestion went unheeded.
He made the allegations while referring to the white paper he submitted to the General Assembly, which states that IIB currently has loan commitments of approx. $21,000 crores, while other projects are worth Rs $Rs 35,000 crore remains to be funded, leaving Kerala with a combined liability of approx $56,000 Crores.
The Prime Minister said that although the KIIFB was set up to accelerate infrastructure development by going beyond the state’s borrowing limits, it has gradually evolved into a “parallel universe” or “parallel government” operating outside the ambit of the Finance Ministry.
He said the white paper was a mirror reflecting the financial mismanagement of the former LDF administration and stressed that extensive fact-checking had been conducted before its launch.
Sathisan was responding to a query by Leader of the Opposition in the State Assembly, Pinarayi Vijayan, on whether any fact-checking had been done before tabling the white paper.
Vijayan also claimed that the policy address lacks concrete policies for the progress of the state and was silent on the future of various welfare and development activities initiated by the previous government.
Refuting these allegations, the Prime Minister said that many of the country’s social indicators have stagnated and there is a need for comprehensive reforms in several sectors.
“It is a political speech containing declarations for the future of Kerala. There may be shortcomings that the opposition can point out, and we will try to address them in the budget,” he said.
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