Kerala faces burden of ₹5.07-lakh crore liabilities; fiscal structure under ‘serious’ strain, says White Paper tabled by CM

Key points

• The White Paper tabled in the State Assembly by Chief MinisterV.D.
• Satheesan on Thursday (June 4, 2026) noted that “behind Kerala’s social achievements lies a fiscal structure that is under serious and growing strain.” The State currently faces a “large burden” of outstanding liabilities (₹5.07 lakh crore), committed expenditures (77% of total revenue receipts – TRR), and interest payments (20.9% of TRR), the document titled ‘Kerala’s Fiscal Health: A Status Report,’ noted.
• The State’s capital expenditure at 1.3% of its Gross State Domestic Product (GSDP) is “one of the lowest” among Indian states despite running one of the highest Fiscal Deficits, it said.
• “Kerala has been violating the basic tenet of ‘borrow to invest, growth will repay’ in a big way, weakening the growth generating capacity,” the White Paper said.
• On KIIFB Further, the fiscal stress has been compounded by “parallel governance structures” such as the Kerala Infrastructure Investment Fund...