UPSC | Prelims GS | 2026

The expert committee’s criticism of KIIFB is most closely related to:

  1. its borrowing no longer remaining outside the State’s borrowing space
  2. its role as a constitutional court
  3. its refusal to finance infrastructure projects
  4. its management of Ramsar wetlands

Answer

Correct Answer

its borrowing no longer remaining outside the State’s borrowing space

Explanation

The committee said KIIFB’s original rationale—raising capital without using the State’s borrowing space—had been extinguished because its borrowing is now counted as direct State borrowing. The criticism concerns fiscal trajectory and audit, not courts, wetlands, or refusal to finance projects.

Topics: economy, kiifb fiscal trajectory, public finance, state borrowing