Kerala Faces Burden of ₹5.07-Lakh Crore Liabilities; Fiscal Structure Under ‘Serious’ Strain, Says White Paper Tabled by CM
The report says committed spending and interest payments absorb most revenue, leaving little room for development and exposing weak fiscal capacity.
- On Thursday, June 4, 2026, Kerala Chief Minister V.D. Satheesan tabled a White Paper in the State Assembly revealing total public debt reached Rs 5.07 lakh crore with committed expenditures consuming 77% of revenue receipts.
- Against a national average of 46.1%, Kerala's committed expenditure burden is more than one-and-a-half times higher, leaving barely one rupee in four for schools, hospitals, roads and welfare programmes.
- Public sector enterprises accumulated losses of Rs 78,851 crore, while the Keralam Infrastructure Investment Fund Board carries outstanding liabilities of around Rs 21,000 crore, creating what the report termed "parallel governance structures."
- Leader of the Opposition Pinarayi Vijayan alleged the government "bypassed established norms" while presenting the paper, characterizing it as a political document rather than objective fiscal analysis.
- Treasury stress forced reliance on Ways and Means Advances for 262 days in 2025 and overdraft for 84 days, while welfare allocations for marginalized communities have declined in recent years.
18 Articles
18 Articles
Kerala white paper seeks major KIIFB overhaul
Thiruvananthapuram: The Kerala government’s fiscal status report has called for a sweeping restructuring of the KIIFB, arguing that the institution has outlived its original purpose and evolved into a parallel fiscal authority whose debt obligations now fall squarely on the state government. The white paper, tabled in the Assembly by Chief Minister V D Satheesan on Thursday, June 4, says Kerala Infrastructure Investment Fund Board currently has …
Kerala Debt Reaches ₹5.07 Lakh Crore, White Paper Reveals
Kerala’s public debt has surged to ₹5.07 lakh crore, a new White Paper by CM V.D. Satheesan reveals, exposing a severe fiscal crisis marked by high liabilities, low capital expenditure, mounting PSU losses and a political clash with former CM Pinarayi Vijayan over the state’s financial legacy.
CM Satheesan Tables 'White Paper' on Keralam Economy, Calls for Overhaul, 'forensic Audit' of KFIIB Accounts
Get latest articles and stories on India at LatestLY. the 'Kerala's Fiscal Health: A Status Report' labelled Kerala Infrastructure Investment Fund Board (KIIFB) as a "parallel fiscal authority" that has created a Rs 56,000 crore financial obligation for the State. This includes Rs 21,000 crore in unmet loan liabilities and Rs 35,000 crore required for projects already in the pipeline. India News | CM Satheesan Tables 'White Paper' on Keralam Eco…
Kerala CM tables white paper on state finances in Assembly; debt at Rs 5.07 lakh crore - The Tribune
Kerala Chief Minister V D Satheesan on Thursday released a white paper on the state’s fiscal health, which said Kerala’s financial structure was under serious and growing strain as it grapples with liabilities of Rs 5.07 lakh crore.
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