"Keralam White Paper reflects negative approach towards public sector, encourages privatisation": CPIM's TP Ramakrishnan

Thiruvananthapuram (Keralam) [India], June 5 : Left Democratic Front (LDF) Convenor and Communist Party of India (Marxist) leader TP Ramakrishnan on Friday criticised the newly released White Paper on Keralam's fiscal status, saying it reflects a negative stance toward the public sector and appears to favour privatisation.
Ramakrishnan emphasised that the LDF will oppose any policy measures that weaken state-run institutions and called for a firm commitment to strengthening public enterprises while promoting development.
"The White Paper reflects a negative approach towards the protection of the public sector. It appears to encourage greater privatisation, and we will oppose any such policies. What is required is a firm commitment to safeguarding and strengthening the public sector while ensuring development moves forward," he said.
Speaking on the White Paper, Ramakrishnan added, "Despite the Centre's economic policies and its approach towards the states, the White Paper does not contain even a word of criticism against the Union Government. The UDF is not taking any position that challenges the Centre, and that is evident from the document."
The LDF convenor also addressed internal alliance discussions, stating that the post of Deputy Leader of Opposition has not yet been finalised.
"The CPI has raised a fresh demand regarding the position, and the matter can be resolved through discussions between the CPI and CPI(M). The matter has been discussed within the LDF, and the CPI has formally sought the Deputy Opposition Leader's post. Efforts to resolve the issue through dialogue will continue, and the atmosphere within the LDF remains cordial and cooperative," he said.
The White Paper, tabled by the newly elected UDF government on Thursday, led by Chief Minister and Finance Minister VD Satheeshan, paints Keralam's economy under extreme structural stress.
It highlights total debt of Rs 5.07 lakh crore, with nearly Rs 48,733 crore in inherited payment arrears, including Rs 21,670 crore in DA arrears. The report labels the Kerala Infrastructure Investment Fund Board (KIIFB) as a "parallel fiscal authority" responsible for a Rs 56,000 crore financial obligation, with Rs 21,000 crore in unmet loan liabilities.
The document criticises KIIFB's independent borrowing, noting higher financing costs than state government borrowings and politically skewed project allocations. It recommends a forensic audit of KIIFB and an overhaul of its legal and operational structure, while retaining institutional capacities developed over nine years.
The White Paper also highlights operational inefficiencies in state Public Sector Enterprises (PSEs), including KSRTC, KWA, and KSEBL, whose accumulated losses rose from Rs 31,571 crore in 2021-22 to Rs 78,851 crore in 2024-25. It notes that essential utilities must remain affordable but warns that social responsibilities should not mask financial mismanagement.
Additional recommendations include raising the retirement age for state employees, reforming consumption-based subsidies, and merging profit-making and loss-making state entities to improve fiscal health.