Kerala's debt climbs to ₹4.85L/cr as CAG warns fiscal strain
Kerala's debt has soared to ₹4.85 lakh crore as of March 2025, according to the latest CAG report presented in the Assembly.
Even though the state's economy grew nearly 10%, its revenue barely moved, rising just 0.3% during the 2024-25 fiscal year.
The report warns that Kerala is struggling to meet fiscal targets and needs to rethink how it manages its money.
Kerala obligations consume 80% revenue
The CAG found Kerala relies heavily on borrowing just to cover basics like salaries, pensions, loan interest payments, and subsidies: these take up a massive 80% of the state's income, leaving little for development.
Over ₹3,500 crore in unpaid dues were carried forward, including pensions and road safety funds.
The report also flagged irregular use of disaster relief money and pointed out that thousands of vehicles are running with expired documents, leading to accidents and revenue losses.
Kerala driver testing stations all nonfunctional
Money spent on driver testing tracks isn't being used well either: only two tracks are working, and none of the testing stations are functional.
This adds another layer to Kerala's financial headaches while public safety takes a hit too.