White paper on Kerala finances exposes VD Satheesan’s claims: KN Balagopal

Former Kerala Finance Minister KN Balagopal said the White Paper tabled in the Assembly exposed the claims of the Congress-led United Democratic Front (UDF) and VD Satheesan when they were in opposition.

Speaking to reporters in Thiruvananthapuram on Thursday (June 4, 2026), Mr. Balagopal said that the Chief Minister, when he was the Leader of the Opposition, kept repeating that the national debt had reached ₹6 crore. He reiterated this even after the then Left Democratic Front (LDF) government said it would not exceed ₹4.8 crore. The white paper estimates Kerala’s outstanding liabilities at ₹5.07 crore, refuting Mr. Satheesan’s claim, Mr. Balagopal said.

In default of payment

At that time, Mr. Satheesan also claimed that the LDF government owed more than ₹1,00,000 crore to government employees. The white paper revealed that the government’s payment arrears were only ₹48,000 crore, he said.

On the privatization proposals in the White Paper, Mr. Balagopal said the critical aspect is whether the state’s interests can be protected in such an environment.

Mr. Balagopal and Leader of the Opposition Pinarayi Vijayan told the rally on Thursday morning that the White Paper should have been prepared by the State Finance Ministry and not an external panel. In a press conference, Mr. Balagopal reiterated the LDF’s stand and highlighted the need to keep critical fiscal data secret.

Mr Balagopal said the study should not end with a white paper. An expert committee headed by KM Chandrasekhar should be tasked with studying the financing of the Indira Guarantees proposed by the UDF government and submit another report. Regarding the Kerala Infrastructure Investment Fund Board (KIIFB), Mr. Balagopal pointed out that the board had described KIIFB as a bold institutional innovation.

Published – 04 Jun 2026 20:14 IST