Kerala Chief Minister VD Satheesan on Thursday tabled a white paper on the state’s financial health in the Assembly, revealing a debt burden of Rs 5.07 lakh crore, rising liabilities, mounting losses on public sector undertakings (PSUs) and one of the lowest levels of capital expenditure among Indian states.
The document immediately triggered a showdown between the ruling United Democratic Front (UDF) government and the opposition Left Democratic Front (LDF), which questioned the contents of the report.
According to the white paper, Kerala is currently burdened by outstanding liabilities of Rs 5.07 lakh crore. The report also highlighted that committed expenditure accounts for 77 per cent of the state’s total revenue receipts (TRR), while interest payments alone consume 20.9 per cent of TRR.
The government further noted that Kerala’s capital expenditure stands at just 1.3 per cent of its Gross State Domestic Product (GSDP), one of the lowest among the country’s states.
On Kerala’s public sector enterprises, the report revealed that accumulated losses of PSUs had increased from Rs 31,571 crore in 2021-22 to Rs 78,851 crore in 2024-25.
The white paper also flagged concerns over the financial position of the Kerala Infrastructure Investment Fund Board (KIIFB), saying that it faces a loan liability of Rs 21,000 crore while projects worth Rs 35,000 crore remain unfunded.
In addition, the government said it inherited unpaid liabilities worth Rs 48,733 crore from the previous administration, including pending dearness allowance (DA) and dearness relief (DR) arrears.
While tabling the document in the Assembly, Satheesan said, “It is a status report of the financial health of the state. It is being brought out to inform the public about the economic condition of Kerala.”
He also rejected allegations that the White Paper was politically motivated, saying it had been prepared under the supervision and leadership of the Finance Department and was based on information already available in the public domain, including budget documents.
“It was approved by the Cabinet, and it is not a political document. The government will seek expert advice wherever required as it does not believe it knows everything,” he said, adding that the UDF government had been elected on a mandate different from that of the previous administration.
UDF VS LDF SHOWDOWN
In his argument against the white paper, former Finance Minister KN Balagopal said the document had not been prepared by the Finance Department in the traditional manner and alleging that internal government accounts may have been shared with private individuals.
He claimed such a move could amount to violations of the Constitution, official secrecy provisions and established government procedures.
“All the white papers in the past were prepared by the Finance Department. It is a political document. If this document is allowed to be tabled, it would create a wrong precedent for the future,” Balagopal said.
Former Chief Minister and now Leader of the Opposition, Pinarayi Vijayan echoed similar concerns, saying it was surprising that the White Paper was not drafted directly by the Finance Department.
While clarifying that the opposition was not against the government seeking expert advice, Vijayan maintained that white papers had traditionally been prepared by the Finance Department itself.
Responding to the criticism, Satheesan questioned how the opposition could conclude that the document violated rules or was politically motivated without first examining its contents.
Following arguments from both sides, Speaker Thiruvanchoor Radhakrishnan ruled in favour of allowing the document to be tabled.
“The chair does not find any violation of the rules in the tabling of the White Paper. It has become a part of the Assembly records,” the Speaker said.
– Ends
(With PTI inputs)
Published By:
Karishma Saurabh Kalita
Published On:
Jun 4, 2026 12:08 IST
