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The Hindu

National

The Hindu Bureau

CAG finds fault with Kerala’s off-Budget borrowings again

CAG Kerala Assembly KSSPL the Kerala Legislative Assembly KIIFB

Off-Budget borrowings have yet again drawn the criticism of the Comptroller and Auditor General (CAG) of India whose latest audit report was tabled in the Kerala Legislative Assembly on February 15 (Thursday).

Apart from borrowings made by the Kerala Infrastructure Investment Fund Board (KIIFB) and the Kerala Social Security Pension Ltd (KSSPL), the borrowings under a bill discounting system also have drawn flak this time.

The report on State finances for the year ended March 31, 2022 observed that the Kerala government had resorted to short-term borrowings for settling pending bills of contractors through the bill discounting system. The promissory notes issued during the year (2021-22) amounting to ₹1,601.72 crore remained unsettled, but the accounts did not reflect this.

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