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CAG Flags ₹12,669 Cr Variation in Kerala's KIIFB & KSSPL Off-Budget Borrowings for FY 2024-25

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
23 Jun 2026
~2 min
Source: The Hindu
Key Data:₹12,669.92 crore₹13,653.01 crore₹8,089.92 crore₹5,563.09 crore₹983.09 crore₹2500 crore
Bodies:CAGKIIFBKSSPL
Practice MCQs from today's news ▸
What This Article Covers

1.CAG report on Kerala State Finances 2024-25 reveals ₹12,669.92 crore variation in off-budget borrowings by KIIFB and KSSPL.

2.Actual borrowings stood at ₹13,653.01 crore (KIIFB ₹8,089.92 cr + KSSPL ₹5,563.09 cr) against only ₹983.09 crore reported to the Centre.

3.CAG recommends full disclosure of such borrowings in Budget and to the Union government, rejecting state's claim that these are 'contingent liabilities'.

The Big Picture
Prelims · HighMains · Medium

The CAG has flagged a massive ₹12,669 crore discrepancy between reported and actual off-budget borrowings by Kerala's KIIFB and KSSPL for 2024-25, exposing a serious transparency gap in state fiscal management. This news is crucial for understanding off-budget liabilities, CAG audits, and state finance accountability for UPSC and state PSC exams.

Exam Lens

Quick Exam Facts From News

Total variation flagged₹12,669.92 crore
Actual total borrowings (2024-25)₹13,653.01 crore
KIIFB actual borrowings₹8,089.92 crore
KSSPL actual borrowings₹5,563.09 crore
Kerala govt reported to Centre₹983.09 crore
Initially reported to CentreKSSPL ₹2500 cr, KIIFB ₹0

1-Minute Revision

  • ›Total variation flagged: ₹12,669.92 crore
  • ›Actual total borrowings (2024-25): ₹13,653.01 crore
  • ›Target this Data: ₹12,669.92 crore variation in off-budget borrowings by KIIFB and KSSPL (2024-25).
  • ›Target this Nodal Body: Comptroller and Auditor General (CAG) – responsible for auditing state finances.
  • ›Target this Legal Point: CAG's power under Article 151 to submit state finance reports to Governor for tabling in Assembly.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which constitutional body is responsible for auditing the finances of state governments and submitting reports to the Governor?

Q2Statement-basedHard

Consider the following statements regarding the CAG report on Kerala State Finances 2024-25:

1. The total actual off-budget borrowings by KIIFB and KSSPL together amounted to ₹13,653.01 crore.

2. Kerala reported borrowings of ₹8,089.92 crore to the Centre for the fiscal year.

3. CAG recommended that the state disclose off-budget borrowings in the Budget and to the Union government.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the CAG report, what was the total actual off-budget borrowing by Kerala's KIIFB and KSSPL for the fiscal year 2024-25?

Q4Application/ImpactMedium

Why does the CAG consider KIIFB and KSSPL borrowings as direct debt of the state rather than contingent liabilities?

All 25 MCQs ▸
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