Kochi: Kerala faces a financial liability of ₹5.07 lakh crore, a document titled ‘Kerala’s Fiscal Health presented in the Kerala Assembly by Chief Minister V D Satheesan on Thursday said.
Kerala has been violating the principle of
‘Borrow to invest, growth will repay’ resulting in weakening the growth generating capacity,” the document tabled by Satheesan, who holds the Finance portfolio, said, Asianet News reported.
The Kerala Infrastructure Investment Fund Board (KIIFB) has drained part of the revenue flow on the one side thereby creating massive liabilities on the other side, it said.
Kerala’s committed expenditure burden is over 150 per cent more than the national average of 46.1%.
This leaves “barely one rupee in four for schools, hospitals, roads, welfare programmes, …” it said.
The new Congress-led government inherited a burden of ₹ 48,733 crore left behind by the CPM-led government.
77 percent of the revenue goes to salary, pension, interests towards loans. There is a liability of ₹ 21,000 crore taken through controversial KIIFB the formation of which was questioned by the CAAG report.
Kerala in ₹5.07 lakh crore debt
