Kerala govt to raise funds beyond budget to boost investment

As Kerala is facing a financial crisis, the state plans to carry out basic infrastructure through KIIFB funds.

By: PTI | Kochi | Published:September 16, 2016 3:10 pm
kerala-cm-vijayan759 Kerala Chief Minister Pinarayi Vijayan. (File)

With Kerala facing a financial crisis, the CPI(M)-led LDF government in the state is planning to raise funds from outside the budget to boost investment.

State Finance Minister T M Thomas Issac on Friday said it will take at least three years for the government to bring the state’s budget to a normal state but this situation would not be allowed to impact its investment plans.

“We are not going to sit idle for three years. We will raise funds from outside the budget through Kerala Infrastructure Investment Fund Board (KIIFB) to boost the investment in the state,” he told reporters here on the sidelines of a function.

The state government has already said basic infrastructure works worth Rs 12,000 crore would be carried out using fund mobilisation through KIIFB.

Nearly half of this amount will be utilised for building roads, bridges and flyovers.

The government had recently amended the KIIFB Act through an ordinance to raise funds to the tune of Rs 50,000 crore outside the budget for taking up infrastructure projects.

According to a white paper tabled in the state assembly in June this year, Kerala’s finances are alarming and there is a need to ensure 20-25 per cent annual growth in tax collection for the next five years.