White paper proves Satheesan's earlier claims were false, says K N Balagopal

THIRUVANANTHAPURAM: Former Finance Minister K.N. Balagopal has criticised the white paper released on the state's financial condition. He said that what the Pinarayi government had stated earlier was correct, while the claims made by V.D. Satheesan when he was the Opposition Leader were false.

"For the past five years, Satheesan had repeatedly claimed that Kerala's debt stood at Rs 6 lakh crore. However, we had clarified at the time that the debt was only Rs 4.85 lakh crore. Now, with the Chief Minister stating in the white paper that the state's debt is Rs 5.7 lakh crore, it has become clear that the figures we presented were accurate," Balagopal said.

"The earlier claim that the government owed around Rs 1.25 lakh crore to government employees has also been proven wrong. The white paper states that the amount is Rs 48,000 crore. Documents do not lie. Changes in the central government's financial policies have had a major impact on Kerala's revenue," he said.

"The Finance Department should be responsible for preparing the white paper. Information related to it should not be made public. Details within the state treasury should be treated as confidential. The expenses involved in the Indira Guarantee schemes should also be studied by the same department to determine the actual cost. When preparing a white paper, it should clearly explain why the state has reached its current financial situation. It should also specify the funds that are due to the state government," Balagopal said.

"The Centre has slashed several allocations that should have been given to the state. The state's debt burden, which had risen to 39 percent of GSDP during the COVID period, has now fallen to 33.6 percent," he added.