Thiruvananthapuram (Keralam) [India], June 4 : Former Keralam Finance Minister and senior CPI(M) leader KN Balagopal on Thursday criticised the White Paper on state finances presented in the Assembly, accusing the Chief Minister of presenting "partial facts" and heavily exaggerating the state's debt burden.
Balagopal pointed out glaring contradictions between the current report and the claims previously made by the Chief Minister during his tenure as the Leader of the Opposition. He stated that the latest figures completely debunk the earlier narrative that Kerala was drowning in unmanageable debt.
Addressing the media, the former Finance Minister argued that the actual liabilities are far lower than what was projected in the past and are well within manageable limits for a routine state administration.
"The White Paper presented by the Chief Minister today in the Assembly contains some facts and some partial facts. Anyway, one thing is very clear: when he was the Opposition Leader, he always used to claim that Kerala is a state heavily burdened with borrowings. He used to say that around ₹1.25 lakh crore was due to government employees and other state departments, and that total borrowing, excluding this, stood at ₹6 lakh crore. However, this report states that total borrowing is only ₹5 lakh crore--and that is calculated up to the present day, meaning it is not just up to March," he said.
"Regarding the total outstanding government liability within departments, the major component is DA (Dearness Allowance) arrears, which total only ₹48,000 crores. Out of this ₹48,000 crore, it is a continuous, routine administrative activity, so it cannot be categorised as a financial burden, as he claimed. He previously stated it was ₹1.25 lakh crore, but now it has come down to only ₹48,000 crores. Therefore, such a borrowing or liability is not a very heavy responsibility for the government, and it can be easily managed," he added.
CPI(M) leader emphasised that the Dearness Allowance (DA) arrears constitute a standard, ongoing administrative requirement rather than a sudden financial crisis.
He concluded that the White Paper effectively proves the state's financial health is stable and far from the alarming picture painted earlier.
Meanwhile, Keralam Chief Minister VD Satheesan on Thursday announced a series of cabinet decisions, including measures to clear pending dues of paddy farmers in Palakkad, financial assistance for families affected by a fireworks unit explosion in Thrissur, and a recommendation to the Centre for a CBI probe into the death of former Additional District Magistrate (ADM) Naveen Babu.
Addressing a press conference after the cabinet meeting, Satheesan said the government had resolved a long-pending issue concerning paddy farmers in Palakkad district.
"Paddy farmers in the Palakkad district had been facing several hurdles in receiving their dues. The issue was discussed in detail through meetings, recommendations were examined, and the Cabinet has now taken a decision that fully addresses the problem," he said.