The newly installed UDF government in Kerala has presented a white paper on the state's fiscal position, highlighting a rising debt burden and low capital spending.
The report shows that Kerala's debt burden rose from 29.37% of GSDP in 2016-17 to 33.22% in 2025-26 RE, exceeding the state's fiscal responsibility targets.
The white paper also reveals that Kerala's capital expenditure of 1.3% of its GSDP is among the lowest in the country, despite running a high fiscal deficit.
The report recommends allowing private investment in the power sector, hiking the retirement age, merging Public Sector Enterprises to reduce tax outgoes, and bringing KIIFB under the budgetary control of finance and other administrative departments.
However, the CPI(M) has alleged that the white paper does not have a developmental approach and proposed recommendations that are in line with a right-wing, neo-liberal corporate policy.
