State Finance Minister K N Balagopal claims that the Center caused Kerala's financial problems artificially.
The Kerala administration claimed that the Center was weakening the federal structure of the nation, which caused the state to experience financial problems. Initiatives for resource mobilization were negatively harmed, according to Finance Minister Balagopal, by the way the Center handled monies raised by the Kerala Infrastructure Investment Fund Board (KIIFB) as part of Kerala's borrowing. KIIFB spent Rs 29,100 crore on projects despite obstacles, with a target of Rs 50,000 crore overall.
THIRUVANANTHAPURAM: The Kerala administration claimed on Monday that the severe financial crisis the state has been experiencing for some time is the result of the Center taking a stance against the nation's federal structure. State Finance Minister K N Balagopal claimed that the "financial plight" was concocted by the union government.
In response to a query in the Assembly, he said that because the Center counts the money earned and spent by KIIFB as part of Kerala's total borrowing, the state government's resource mobilization measures were negatively impacted.
However, he noted, the state government has not placed any limitations on funding projects approved by the Kerala Infrastructure Investment Fund Board (KIIFB).
Keralan government organization KIIFB raises money from the markets to support infrastructure projects.
"Kerala has been reeling under an acute financial crisis due to the anti-federal stand adopted by the Centre," said Balagopal.
The minister stated that the KIIFB could spend Rs 29,100 crore on different projects in spite of all these unfavorable circumstances.
He acknowledged that unfavorable circumstances were causing KIIFB's operations to move slowly at the moment, but he denied claims that the organization's programs were not being carried out at all.
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