Relief fund diverted, KIIFB a liability; CAG report for 2024–25 tabled in Assembly

Thiruvananthapuram: The Comptroller and Auditor General (CAG) report for 2024-25, which raised concerns over the functioning of the previous Left Democratic Front (LDF) government, drew attention in the Legislative Assembly on Tuesday. 

The report points to the diversion of funds from the Chief Minister’s Distress Relief Fund (CMDRF) and describes the Kerala Infrastructure Investment Fund Board (KIIFB) as a liability. It also highlights issues related to off-budget borrowing and pending financial obligations.

Funds transferred from relief fund

According to the report, ₹262.06 crore was transferred from the Chief Minister’s Distress Relief Fund to the Consolidated Fund.

The CAG said the transfer was made to reduce the reported revenue deficit, thereby presenting a lower revenue shortfall in the state's accounts.

Concerns over borrowing and liabilities

The report noted that Kerala’s off-budget borrowings stood at ₹39,230 crore.

It also said the state had unsettled liabilities amounting to ₹3,511 crore.

While expenditure increased during the period under review, revenue registered only marginal growth, the report observed. The CAG reported that the state's gross domestic product growth rose from 9.3 per cent to 9.97 per cent. Revenue growth was at 0.3 per cent.

The report also pointed to a 42 per cent decline in assistance from the Centre.