Thiruvananthapuram: With Covid-19 affects the overall income in the final financial year, the state government significantly reduces the share of funds to the Kerala Infrastructure Investment Fund (Kiifb) for 2021-22, due to funds sought by it.
In accordance with the upper government sources, while Kiifb searches for Rs 2,400 Crore for 2021-22 to fulfill its project commitment, the state government only cleans Rs 1,560 crores until now.
It is claimed to be reliably that the government has not received the remaining calls RS 840 Crore.
“The income of the state government of motor vehicle tax and the Petroleum Cess in the last financial year was hit by a pandemic.
The obligatory share of the Kiifb must be reduced.
KIIFB requested Rs 2,400 Crore to fulfill his expenses but the government has not made the last call.
There is a possibility that the amount of balance can be approved as a loan from the government, “said the source.
Kiifb receives Rs 1,921.11 Crore, as part of petroleum received by the state until March 31, 2020.
According to the Kiifb 2019-20 annual report, the government provides Rs 3,651.74 Crore from motorized vehicle tax and Rs 2,634.52 Crore as a grant.
In accordance with the Kiifb Law (Amendment), 2016, the government sets 10% of motor vehicle tax in 2016-17 for Kiifb, increasing 10% every year to reach 50% in the fifth year.
CS charged on gasoline and diesel is also given to Kiifb, before 31 DES every year and paid by Escrow from the Treasury State to the KIIFB account automatically.
The government channeled the Crore Rs 8,207.07 to Kiifb under the three heads until March 31, 2020, according to the audit report.
Until May this year, Kiifb approved 903 projects with RS 63,224.42 crore expenses.
These projects consist of physical and social infrastructure in various sectors, including hospitals and health centers, schools and colleges, roads and bridges, water supply and sanitation, electricity and communication networks, cultural complexes, etc.
Project worth RS 21,309.68 Crore is tendered and 27 projects, worth 732 crore Rs, and 160 components of the project worth RS 560.29 Crore have been assigned.
In addition to RS 2,150 Crore increased through Masala bonds with an interest rate of 9.723%, Kiifb utilizes a long-term loan from Nabard (RS 565 Crore at 9.30%), Bank Negara India (Rs 1,000 Crore at 9.15%), Bank India (RS 500 crores at 9.15%) and Union Bank of India (Rs 500 Crore at 8.95%).
The government reduces the share of funds to Kiifb because it falls in income
