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Kerala in huge financial crisis: State government informs High Court

Our state is currently going through a phase of financial constraints, the government said in its affidavit.


Kerala’s ruling Left government has told the High Court that the state is facing a “huge financial crisis”.

This assertion was made by the government in an affidavit filed before the court in a case related to the refund of a Kerala Transport Development Finance Corporation (KTDFC) Ltd depositor.

“Our State is currently going through a phase of financial constraints. Any monetary advantage must be authorized within the limits of the financial resources available to the government,” affirmed the government.

The government’s proposal did not find favor with the High Court, which questioned whether Kerala was in a state of financial emergency.

The state also said in its affidavit that the KTDFC and the Kerala State Road Transport Corporation (KSRTC) may mortgage the property or sell one or two items of the property to outside parties or government agencies to resolve their financial problems.

“But unfortunately, no positive steps have been taken by KTDFC or KSRTC,” he told the court, adding that the two entities together own immovable properties worth around Rs 1,000 crore in the ‘State.

The government also claimed that despite a huge financial crisis, it had released Rs 8,440.02 crore to KSRTC for various expenditures from 2018-19 to October 15, 2023.

“Even though the government supports public sector undertakings, including the KSRTC, in various ways, it is evident that the government is not legally required to provide financial support to run its day-to-day affairs,” a- he said in the affidavit.

The affidavit follows a private company’s request urging the government to intervene and order KTDFC to release the money deposited with it by the petitioner’s company.

The protest comes amid Keraleeyam 2023, a mammoth week-long celebration announced by the Left government to showcase Kerala’s progress, achievements and cultural heritage to the world, which began on Wednesday.

The opposition Congress-led UDF had boycotted the event, alleging extravagant spending by the Left administration at a time when the state was going through a huge financial crisis.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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