Masala Bonds Explained: Why ED is After Kerala CM? | UPSC Economy Current Affairs

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Timestamps:
00:00 What are Masala Bonds? Simple Definition
00:35 Masala Bonds vs Regular Foreign Bonds
00:40 Kerala KIIFB Masala Bond Case (₹2150 Cr)
01:00 RBI Permission vs Finance Ministry Approval
01:27 CAG Objection & Article 293 Violation
01:55 When States Need Centre's Permission for Loans
02:08 FRBM Act & Fiscal Deficit Limits Explained
02:47 Why Kerala is in Financial Crisis
03:01 Tourism Collapse & GST Revenue Loss
03:19 Online Betting Killing Lottery Income
03:31 Over-staffing & Pension Burden in Kerala
04:27 Welfare Spending: Kerala vs UP/Bihar
04:50 Off-Budget Borrowing Trick (Kisi ka Bhai Model)
05:18 Supreme Court Verdict on Borrowing Limits
05:41 UPSC Prelims 2016 PYQ on Masala Bonds
06:38 IFC Masala Bonds Example (World Bank)
07:00 Why Indian Companies Prefer Masala Bonds
07:32 No Currency Risk + Better Credit Rating
08:08 Final Answer of 2016 PYQ
08:12 Free Resources & Announcements


Why is the Enforcement Directorate (ED) investigating Kerala CM Pinarayi Vijayan? The answer lies in "Masala Bonds" worth ₹2150 crore issued by Kerala Infrastructure Investment Fund Board (KIIFB). In this latest Economy lecture, renowned UPSC educator Dr. Mrunal Patel breaks down everything about Masala Bonds, the Kerala Masala Bond controversy, Article 293 violation, FRBM Act limits, off-budget borrowing tricks, and why state governments need Centre's permission for foreign loans.

Key Highlights:
What are Masala Bonds? Rupee-denominated bonds issued outside India (simple definition with example)
How KIIFB raised ₹2150 crore from UK & Singapore without Finance Ministry approval
Why CAG called it unconstitutional (Article 293 explained)
How Kerala bypassed FRBM fiscal deficit limits using "Kisi ka Bhai Kisi ki Jaan" model
Currency risk vs Masala Bonds advantage for Indian borrowers
Real UPSC Prelims PYQ on Masala Bonds (2016) fully solved
Why Kerala is facing revenue crunch: Tourism fall, online betting impact on lottery income, high welfare spending & over-staffing

Perfect for UPSC CSE, State PSC, CAPF, CDS, SSC CGL, Banking, IBPS, RBI Grade B & all competitive exams.

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