Kerala Chief Minister V.D. Satheesan, who also holds charge of the finance portfolio, tabled a white paper on the state’s fiscal position in the Assembly on Wednesday. The document said Kerala’s total debt burden has risen to Rs 5.07 lakh crore.
According to the white paper, 77% of the state’s revenue is spent on salaries, pensions and interest payments, with interest alone accounting for 20.9%. This, it said, has sharply reduced funds available for development works.
The report noted that Kerala is facing a severe fiscal deficit and has one of the lowest capital expenditures in the country, with capital spending at just 1.3% of the state’s gross domestic product. It also said the new government has inherited pending liabilities of Rs 48,733 crore, including dearness allowance and related arrears for government employees and pensioners.
It flagged additional stress points such as Rs 21,000 crore in pending debt with the Kerala Infrastructure Investment Fund Board and an overall loss of Rs 78,851 crore among public sector undertakings, including the state road transport corporation and the water authority. The paper also cited a fall in allocations for SC/ST and minority welfare schemes in recent years, lower-than-expected state tax collections, and reduced central assistance.
Satheesan told the House the white paper was a factual document prepared under the finance department’s supervision using publicly available data, and not meant as a political exercise. Left leaders, including former finance minister K.N. Balagopal and opposition leader Pinarayi Vijayan, criticised the report as irregular and politically motivated, while the chief minister rejected the charge and said it should serve as a roadmap for Kerala’s future.
