Thiruvananthapuram: The Comptroller and Auditor General (CAG) has exposed the Kerala Government's claim that it resorted to borrowings in order to implement developmental projects.

According to the CAG's report for 2020-21, the Left Democratic Front (LDF) government headed by Chief Minister Pinarayi Vijayan had not utilised even half of the money borrowed for development during the five years of its first term (2016-21). As many as 354 projects to be completed by March 31, 2021 are still in limbo, of which 74 could not be made operational even after five years, said the report.

Revenue deficit overshoots

Moreover, the revenue deficit has exceeded the limit of 3 per cent and touched Rs 25,829 crore, which equals 3.4 per cent, according to the report. Apart from the budget expenditure of Rs 3.08 lakh crore, the state government has borrowed Rs 669 crore from KIIFB (Kerala Infrastructure Investment Fund Board) and another Rs 8,604 crore from the Social Security Pension Fund, which have not been included in the budget, said CAG.

No cap on borrowings

The CAG also said that the Kerala government has so far been unable to control borrowings and increase revenue which could prevent a financial crisis.

Rs 2,000 crore loan sought

Meanwhile, the state government has approached the Reserve Bank of India seeking another Rs 2,000 crore as loan, which is to be repaid in 12 years. The credit is sought when barely a few days remain for the current financial year to end.

The loan is sought to clear treasury bills and distribute welfare pensions.