CAG report tabled in Kerala Assembly amid sturdy objection of finance minister Isaac

By Express News Service
THIRUVANANTHAPURAM: Setting a brand new precedent within the meeting, the CAG report was tabled within the House amid the sturdy objection of finance minister Thomas Isaac. This is the primary time within the historical past of meeting that the CAG report was tabled with an objection notice of the finance minister, which was strongly opposed by the Opposition.

As anticipated, the CAG report tabled within the meeting forged severe aspersions on the transparency of the KIIFB, a lot to the chagrin of the finance division. The report stated that the state authorities was saying the KIIFB borrowings had been contingent liabilities.

But it contradicted the finance division contentions saying the borrowings would develop into a legal responsibility on the state authorities when there’s a default by the KIIFB in reimbursement. The KIIFB was arguing that it will probably repay its liabilities utilizing the petroleum cess and share of motorcar tax being acquired yearly from the state authorities.

But the CAG report refuted the competition saying that if any state authorities borrows cash within the identify of any PSU or AB which has no impartial supply of earnings and the loans are to be repaid by keeping apart a share of the federal government’s personal assets, the mortgage isn’t a contingent legal responsibility as termed by the state authorities however a legal responsibility by itself earnings.

As the state authorities selected to lift funds within the identify of KIIFB and the debt is to be discharged from the federal government’s personal income reminiscent of cess on petroleum and part of the motorcar tax, it has undoubtedly created a legal responsibility by itself income assets, the report stated.

This is a basic case of off price range borrowings which bypass the boundaries set on authorities borrowings underneath article 293 of the Constitution of India, the report stated. Creating such liabilities with out disclosing them within the price range raises questions each of transparency and of inter-generational fairness. Merely not exhibiting the borrowing within the price range doesn’t imply that legal responsibility of discharging it from the state revenues will disappear, the report stated.

Before tabling the report, finance minister Thomas Isaac knowledgeable the meeting that the CAG had significantly violated the process within the method of preparation and submission of the state finance audit report. “Due to the procedural violations, the finance department is forced to table the report with audit objections,” he stated.