LDF Hits Back at White Paper; K N Balagopal Questions Legality of External Committee-Drafted Document

Thiruvananthapuram: Former Finance Minister K N Balagopal has questioned the propriety of a white paper on Kerala's finances being prepared by an external committee rather than the Finance Department, calling it a potential violation of constitutional norms and oath of office. He said the Finance Department is the rightful body to prepare such a document, which involves official confidential records, and that allowing an outside committee to do so sets a dangerous precedent.

Balagopal said the release of the white paper has effectively demolished the UDF's long-standing claim that Kerala is drowning in debt. When V D Satheesan was Leader of the Opposition, he had repeatedly claimed the state's debt stood at ₹6 lakh crore — a figure the LDF government had disputed at the time. The white paper now puts the debt at ₹5 lakh crore, vindicating the LDF's position, Balagopal said.

He also rejected the claim that government employees are owed over ₹1 lakh crore, saying the white paper itself shows pending dues — including DA arrears — amount to ₹48,000 crore. He called the figures Satheesan had cited across the state "outright lies meant to mislead the public."

Balagopal further said the white paper fails to acknowledge the sharp decline in central grants to Kerala — from ₹33,000 crore in 2021 to just ₹7,000 crore last year — or the fall in tax revenue following GST implementation. He said Congress lacks the political courage to call out the central government's treatment of Kerala, and accused Satheesan of using the white paper merely as a political weapon against the opposition rather than engaging honestly with the state's fiscal situation.