CPI (M) releases 'White Paper of Facts' to counter govt's fiscal report

Thiruvananthapuram, Jul 14 (PTI) The CPI(M) on Tuesday released a "White Paper of Facts" countering the UDF government's recent white paper on Kerala's finances, alleging that it misrepresented the state's economic position and ignored official data to project the state as being in financial distress.

Leader of the Opposition Pinarayi Vijayan released the document in the presence of former Finance Minister K N Balagopal and CPI(M) state secretary M V Govindan at a function here.

Describing the government's "Kerala's Economic Health Status Report", the CPI(M) said it "is a classic example of complete lack of academic integrity and political conspiracy." "The UDF is attempting to portray Kerala as being in economic collapse by concealing facts, twisting statistics to suit itself and distorting realities," the document said, adding that the alternative paper sought to expose what it described as the UDF's false claims while highlighting the achievements of the previous LDF government.

Comparing the economic performance of the UDF (2011-16) and LDF (2016-26) governments, the report claimed Kerala recorded stronger growth under the Left despite floods, the Covid-19 pandemic, financial restrictions imposed by the Union government and declining Gulf remittances.

It said the average Gross State Domestic Product (GSDP) growth at constant prices during the UDF's tenure was 5.52 per cent, falling to 3.89 per cent in 2013-14, while the LDF raised annual GSDP growth to 7.10 per cent before the pandemic.

It also said the state's GSDP growth rose to 11.78 per cent in 2021-22, describing it as the highest annual growth rate in a decade, and claimed the LDF achieved an overall real growth of 7.9 per cent after overcoming the decline in the agricultural sector.

On the state's finances, the CPI(M) rejected the UDF's allegations on debt.

"The UDF's claim that Kerala's debt has crossed Rs 5 lakh crore is completely baseless and reflects ignorance of even the basic principles of economics," the document said.

It further alleged that "the UDF is presenting false figures without even understanding the difference between public debt and total debt and liabilities." Citing the Accountant General's preliminary figures available in April 2026, the document said Kerala's total debt and liabilities for 2025-26 stood at Rs 4.79 lakh crore, or 33.6 per cent of GSDP, while actual public debt, comprising market borrowings and Central loans, was Rs 3.47 lakh crore, or 24.3 per cent of GSDP.

The report also accused the UDF of selectively relying on budget estimate figures while ignoring the Accountant General's latest data.

The CPI(M) further claimed that own tax revenue had more than doubled and non-tax revenue had more than tripled by the time the LDF demitted office in 2026, compared with 2015-16.

Rejecting allegations regarding SC and ST allocations, the report said the mandatory allocations under the Scheduled Caste Sub Plan (SCSP) and Tribal Sub Plan (TSP) had been maintained every year from 2017-18 to 2025-26 and accused the UDF of concealing expenditure routed through local self-government institutions.

Highlighting the previous LDF government's economic initiatives, the report said Kerala's score under the Centre's State Business Reform Action Plan increased from 22.8 per cent in 2015 to 99.3 per cent in 2024, earning the state a place among the country's "Fast Movers".

It also said 4,09,383 new enterprises were established under the Entrepreneurship Year programme, creating 8,72,225 jobs, while the Invest Kerala Global Summit 2025 resulted in the signing of 449 Memoranda of Understanding (MoUs) worth Rs 1.80 lakh crore.

Defending the Kerala Infrastructure Investment Fund Board (KIIFB), the document said the UDF's allegation that the funding mechanism was unconstitutional was "completely baseless." It also said "the claim that the Comptroller and Auditor General (CAG) has treated KIIFB's debt as the State Government's debt is another falsehood," adding that the issue was pending before a Constitution Bench of the Supreme Court and that it was "malicious" for the UDF to pronounce a verdict before a final judicial decision.

The report was also critical of the government's revised Budget.

"The government's Status Paper and the revised Budget are not merely economic documents, but a manifesto reflecting a politically motivated move to withdraw from welfare activities and shrink the public sector," it said.

According to the document, the government reduced the State Plan outlay by Rs 5,380 crore, cut allocations under the Scheduled Caste Sub Plan and Tribal Sub Plan, and reduced grants to local self-government institutions by Rs 1,533.55 crore.

It also alleged that welfare schemes such as "Sthree Suraksha" pension and "Connect to Work" were omitted from the Budget, while government employees' dearness allowance arrears and pensioners' benefits were being deliberately withheld.

The report further alleged that the reduction in excise duty on low-alcohol liquor benefited the liquor lobby and claimed the government's argument of an economic crisis was being used to justify privatisation and facilitate corporate entry into the exploitation of Kerala's mineral sand resources.

It said the UDF government's own revised Budget projected Rs 1,69,646 crore in own revenue and Rs 2,27,567 crore in total expenditure during the current financial year, which, according to the CPI(M), contradicted its claim that Kerala was facing an economic collapse. PTI