Kerala white paper shows 5.07L/cr debt, CM Satheesan warns
Kerala's debt has shot past ₹5.07 lakh crore, with nearly ₹49,000 crore in unpaid dues and deferred bills.
The state's new white paper, tabled in the Assembly by Chief Minister V D Satheesan, lays it all out: rising liabilities are making it tough for Kerala to invest in development and infrastructure.
Kerala uses 77% revenue for salaries/pensions/interest
A huge chunk of Kerala's revenue (77%) is spent on salaries, pensions, and interest payments. Interest alone eats up 20.9%.
With capital spending at just 1.3% of the state's GDP (one of India's lowest), there isn't much left for new projects.
The report also notes Kerala relied on Reserve Bank of India borrowings for most of 2025.
KIIFB owes 21,000cr, 35,000cr projects pending
The Kerala Infrastructure Investment Fund Board is feeling the squeeze too.
It owes ₹21,000 crore in loans and has ₹35,000 crore worth of projects waiting for funding.
Its borrowing costs are higher than the state's own rates, raising concerns about how sustainable its financial model really is.