T’puram: The Kerala Infrastructure Investment Fund Council is an annuity-based economic model and not an entity made for off-budget loans, Kiifb said in response to observations carried out by Comtrrollers and General Auditors (CAG) in the report submitted in the assembly last week.
The government has entrusted Kiifb to implement the RS 70,000 Crore project that was announced in previous years.
For this purpose, the government provides legal guarantees that gasoline Cess and half of motorized vehicle tax collection will be paid to Kiifb as a growing annuity.
In other words, Kiifb is an organization with strong sources of income.
The next statement added that 25% of the project carried out by Kiifb was income income and they included loans given to KSEB, K-Fon and Industrial Park.
This income along with the revenue possessed by the government will ensure that Kiifb will never be a debt.
Kiifb has also developed asset accountability software that will calculate the obligations of each project.
In addition, revenues that will reach Kiifb in the coming years can also be counted first.
The Kiifb Board of Directors will delete the project only after ensuring that its obligations will never affect its income and function based on the asset accountability model.
The government has not contained Kiifb as a model that can take advantage of loans outside the budget, but as a legal entity required to find resources for infrastructure development in the state.
Furthermore said that comments made in the 2020 CAG report were one side and not in accordance with the facts about Kiifb.
In the period discussed in the CAG report, the Center has also made transactions based on annuities.
Until 2019-20, Kiifb took advantage of Rs 5,036.61 Crore as a loan and paying Rs 353.21 Crore as an interest in the loan.
The government shares Rs 5,572.85 Crore with Kiifb collected from motor vehicle tax and petroleum Cess.
This means that Kiifb receives more funding from the government than paying in its obligations.
For this reason, loans available by Kiifb do not need to be interpreted as off-budget loans or direct government obligations, he said.