Committee report finds KIIFB cost Kerala ₹13,104cr recommends halting borrowing
A committee report found that Kerala's KIIFB funding model has cost the state a whopping ₹13,104 crore. There could be more than ₹70,000 crore in future liabilities stretching through 2041-42.
The committee behind the report says the scheme didn't deliver on its promises and recommends stopping KIIFB from borrowing more money.
KIIFB funds mostly repaid old debts
KIIFB was transformed into a major infrastructure financing agency in 2016 to boost infrastructure with funds raised from market loans backed by vehicle taxes and petrol cess.
But most of that money ended up paying off old debts instead of building new stuff.
The committee now wants all KIIFB debt handled openly within the state budget, an end to its special revenue streams, and a full audit by India's top financial watchdog to help Kerala avoid more financial headaches down the line.