Overview
- On the day the state ran silver‑jubilee ads touting about ₹90,562 crore of projects, Congress veteran Cherian Philip said KIIFB has pushed Kerala into deep financial distress.
- Philip alleged delayed or missing audits, opaque SPV‑based contracting, and diversion of fuel and motor‑vehicle taxes into the fund.
- He cited multiple CAG reports flagging off‑budget practices and said the government passed an Assembly resolution defending KIIFB rather than acting on the findings.
- Philip criticised heavy borrowing through bonds and loans, including from NABARD, at rates above nine percent, called Masala Bonds on the London Stock Exchange a foreign‑exchange violation, and argued projects lack revenue streams.
- Chief Minister Pinarayi Vijayan called KIIFB a transparent, professionally run driver of statewide development, as the Finance Minister noted the Centre now counts KIIFB borrowings in state debt but vowed projects will continue, and the CEO said borrowings rest on secure revenues managed through an asset‑liability system.