3 weeks ago
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One of the archetypal announcements that Kerala’s caller Chief Minister V.D. Satheesan made aft taking complaint connected Monday (May 18, 2026) was that his authorities would soon bring retired a White Paper connected the authorities of State finances.
Speaking to presspersons aft the archetypal Cabinet gathering of the Congress-led United Democratic Front (UDF) government, Mr. Satheesan said a sheet of experts would beryllium constituted for drafting the White Paper. The purpose is to pass the radical of Kerala astir the existent presumption of State finances, helium said. The papers volition beryllium published soon, according to him.
When successful the Opposition, Mr. Satheesan and the UDF had consistently attacked the fiscal policies of the erstwhile Left Democratic Front (LDF) government, accusing it of pushing the State into a indebtedness situation and failing to prod the Centre into releasing Kerala’s rightful stock of fiscal resources.
KIIFB's future
It besides remains to beryllium seen however the caller UDF authorities would attack the Kerala Infrastructure Investment Fund Board (KIIFB), the entity restructured by the past LDF authorities successful 2016 to mobilise funds for ample infrastructure projects. In March 2017 itself, Mr. Satheesan, past successful the Opposition, had accused the LDF government’s past Finance Minister T.M. Thomas Isaac of utilizing the KIIFB to bypass the Constitution and the Fiscal Responsibility and Budget Management (FRBM) Act, ignoring the anticipation that specified a measurement could wreck Kerala’s economy. This parallel mechanics of raising funds done the KIIFB was placing sizeable unit connected the exchequer, helium had alleged then. The UDF had considered itself vindicated erstwhile the Comptroller and Auditor General (CAG) aboriginal criticised off-Budget borrowings by the KIIFB and warned that they would propulsion the State into a indebtedness trap.
LDF excessively had published
This volition not beryllium the archetypal clip a White Paper is being projected connected the taxable of State finances. In 2016, erstwhile the LDF authorities took implicit from the UDF authorities led by Oommen Chandy, Finance Minister T.M. Thomas Isaac had tabled a White Paper successful the Assembly. In 2023, the Opposition UDF had published its ain White Paper. The insubstantial blamed the LDF authorities for pushing Kerala into a fiscal situation and ‘toxic debt.’
More recently, State finances was successful absorption erstwhile Mr. Satheesan, pursuing the UDF triumph successful the 2026 elections, remarked that the beforehand has inherited an bare treasury from the LDF. Senior Congress person A.K. Antony, speaking to presspersons, besides had alleged that Kerala was a pauper State. He besides advised the radical not to expect populist measures 1 aft the different from the caller UDF government, and immoderate belt-tightening should beryllium expected.
₹6,000-crore currency balance
K.N. Balagopal, who was the Finance Minister successful the 2021-2026 LDF government, had countered Mr. Antony’s charge, saying that the Kerala system is not successful a unsafe presumption arsenic Mr. Antony makes it retired to be. “Not conscionable that, it is successful a overmuch amended position,” Mr. Balagopal had told a property league recently. This is evident from the Budgets of the State authorities implicit the past 10 years of the LDF rule, CAG reports and Union authorities documents, helium said. The treasury had a currency equilibrium of ₹6,000 crore erstwhile the LDF authorities stepped down, according to him.
