Despite grave concerns raised in the white paper, Kerala budget silent on bringing down committed expenditure (opens original article in a new tab)

Kerala's budget acknowledges rising debt and high committed expenditure but avoids addressing structural fiscal issues, relying instead on optimistic economic growth projections.

• Kerala's budget projects a marginal decrease in debt-to-GSDP ratio to 33.5% by 2026-27 despite rising total debt.
• Committed expenditure, including salaries, pensions, and interest, accounts for 72.14% of revenue receipts in 2026-27, remaining the second-highest in India.
• The budget does not address structural issues of high committed expenditure, which limits capital spending and contributes to revenue deficits.