Thiruvananthapuram: The state GST department emerged as Kerala’s largest spender under the secret service fund in 2024-25, spending Rs 2.2 crore, more than even the police department, even as questions raised by the then opposition UDF over the utilisation of the confidential fund remain unanswered more than two years later.Budget records show the expenditure was incurred under the secret service expenditure head in 2024-25, against Rs 1.95 crore spent by the police department. The spending has come under renewed focus, with finance department sources indicating that an internal examination of the fund’s utilisation is under consideration.The figures are significant because the GST intelligence wing, responsible for detecting tax evasion and intelligence-based enforcement, has a strength of only around 240 personnel. Despite its relatively modest size, the department spent more under the head than the police, excise (Rs 20 lakh), vigilance (Rs 15.4 lakh) and forest (Rs 8 lakh) departments.Senior govt sources said concerns over the fund’s utilisation have resurfaced as issues flagged in the assembly by the then opposition remain unresolved. The fund is meant for intelligence gathering and anti-evasion operations and is exempt from many disclosure requirements applicable to ordinary govt expenditure.The issue dates back to an unstarred question raised by Congress MLA I C Balakrishnan during the 10th Session of the 15th Kerala legislative assembly. Listed for answer on Feb 13, 2024, the question sought details of officers authorised to operate the fund, amounts withdrawn from the treasury, utilisation certificates, maintenance of cash books and vouchers, and whether withdrawn money was deposited in personal bank accounts.It also sought details on scrutiny of expenditure, alleged spending on hotel bills and hospitality unrelated to tax evasion investigations, and whether the finance inspection wing had powers to examine such expenditure. More than two years later, the question remains unanswered.The issue resurfaced in Sept 2025 when Congress MLA Uma Thomas sought details relating to GST intelligence operations and the secret service fund. The govt declined to disclose the information, citing the fund’s confidential nature.Finance department sources said there is credible information warranting closer examination of fund transactions in the GST department. “Some expenditures may not have had a direct connection with tax intelligence operations and certain hospitality expenses require verification,” said a source.Another top govt source said the absence of routine scrutiny is itself a concern. “Secret service funds are confidential by nature, but confidentiality cannot mean absence of accountability,” the source said.Officials said any examination, if approved, would focus on withdrawals, utilization certificates and expenditure records to determine whether spending conformed to the purpose for which the fund was created.
