Thomas Isaac backs KIIFB in Assembly, dismisses criticism in CAG report

The Finance Minister also dismissed the criticism of borrowing of money outside of the state budget.

Thomas Isaac | Photo: Mathrubhumi

Thiruvananthapuram: Finance Minister Thomas Isaac stated that the Opposition should think about whether they should align with CAG’s observation that KIIFB was anti- constitutional.

The Finance Minister was responding to the adjournment motion notice by Congress MLA VD Satheeshan. KIIFB will finance at least Rs 12,000 crore by March. This kind of development is unparalleled. Thomas Isaac asked the Opposition to think about how the state will change in the next 3-4 years when these projects become a reality.

It is not the state government that takes the masala bond, rather it is by a corporate body that was formed by this Assembly. A corporate body formed by this Assembly based on the Centre's Foreign Exchange Management Act, is eligible to take this loan. Thomas Isaac asked whether the Reserve Bank of India raised any questions regarding this issue despite all the controversies. A small state like Kerala is making a statement in the international market. KIIFB has decided to mobilise Rs 60,000 crore for the state and this will convey what the state is capable of.

The Finance Minister has also dismissed the criticism of borrowing of money outside of the state budget. Thomas Isaac said that this is not borrowing money from outside the budget. This is a loan taken by a corporate body called KIIFB, he added.

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