THIRUVANANTHAPURAM: In a major controversy surrounding the financial management of the Kerala Infrastructure Investment Fund Board (KIIFB), annual report analyses reveal that the body absorbed publicity and promotional expenses worth hundreds of crores, including a Rs 5.4-crore nationwide media campaign condemning central government borrowing caps. When questioned by its internal auditors regarding the relevance of such promotional exercises to its core mandate, KIIFB management defended the spending as “unavoidable to sustain the existence of KIIFB.” Ironically, the Centre’s borrowing restrictions were partly triggered by KIIFB’s own market borrowings, which have been counted against the state’s net borrowing ceiling since fiscal year 2020-21.
A detailed examination of KIIFB’s annual reports spanning from 2016-17 to 2025-26 indicates that nearly Rs 475 crore was allocated toward publicity and promotional activities. Almost half of this total—amounting to Rs 216 crore—was channeled over three years into ‘Ente Keralam’, the official anniversary campaign of the LDF government. This publicity expenditure is more than double the Rs 87 crore cumulative sum KIIFB has ever disbursed toward SC/ST community development projects.
Financial records show KIIFB spent Rs 52.03 crore on ‘Ente Keralam’ in 2022-23, Rs 67.45 crore in 2023-24, and Rs 96.44 crore in 2025-26, booking these sums directly as project costs under executive government orders. For the 2023-24 financial year, official auditors noted they were “not able to express an opinion on the authenticity of expenses” regarding the anniversary campaign and related line items.
Prominent economists have termed the off-budget promotional spending unwarranted and scandalous, highlighting systemic procedural lapses.
Audits further revealed that third-party execution agencies engaged during that period were nominated without standard competitive bidding, with one firm charging a 20 percent administrative overhead fee. For 2022-23, auditors flagged that work orders were retroactively issued to vendors “after completion of work and receipt of invoices,” noting the expenditures lacked formal budgetary backing. Additionally, KIIFB diverted Rs 12.95 crore in 2023-24 to build temporary infrastructure for the state’s ‘Keraleeyam’ cultural festival.
For more details: Navamalayalam.com