‘Kerala is Facing Huge Financial Crisis’: Left Govt to HC

The ruling Left government in Kerala has told the High Court that the state is currently grappling with a huge financial crisis. This statement was provided by the government in an affidavit submitted to the court in a matter concerning the repayment of a depositor of the Kerala Transport Development Finance Corporation (KTDFC) Ltd.

The government said, “Our state is now passing through a phase of financial constraints. Any monetary benefit has to be allowed within the financial resources available with the government,”

However, the High Court did not favor the government’s submission and questioned whether Kerala was indeed in a state of financial emergency.

In its affidavit, the state also suggested that both the KTDFC and the Kerala State Road Transport Corporation (KSRTC) could mortgage or sell certain portions of their immovable property to external parties or government agencies to address their financial issues. The two entities collectively possess immovable properties valued at approximately Rs 1,000 crore within the state.

Despite the significant financial crisis, the government asserted that it had disbursed Rs 8,440.02 crore to KSRTC for various expenses from 2018-19 until October 15, 2023. The government emphasized, “Although the government supports Public Sector Undertakings, including KSRTC, in various ways, it is evident that the government is not legally obligated to provide financial assistance for their day-to-day operations.”

This affidavit was submitted in response to a plea from a private company, which urged the government to intervene and instruct KTDFC to release the funds deposited by the petitioner’s company.

This development arises during the Keraleeyam 2023, a week-long grand celebration announced by the Left government to showcase Kerala’s progress, achievements, and cultural heritage to the world. The event commenced on Wednesday. However, the Congress-led UDF opposition boycotted the event, citing extravagant expenditures by the Left administration during a period when the state is grappling with a substantial financial crisis.