Keralam CM VD Satheeshan tables UDF govt's first budget in legislative assembly
Thiruvananthapuram, June 19
Keralam Chief Minister VD Satheesan on Friday presented the first state budget of the UDF government for the financial year 2026-27 in the legislative assembly.
Satheesan also handles the Finance portfolio.
Ahead of the Budget presentation, the Printing Department delivered the printed copies of the Kerala State Budget to the official residence of the Chief Minister.
Additional Chief Secretary of the Finance Department, K R Jyothilal, arrived at the Chief Minister's residence with the printed Budget documents as part of the customary pre-budget exercise.
On June 4, the White Paper on Keralam finances, tabled in the state's legislative assembly, painted a grim picture of the state's fiscal health, stating that the new United Democratic Front (UDF) government inherited a severe financial crisis marked by mounting debt, rising liabilities and persistent treasury stress.
The major findings in the financial report revealed that Keralam's total public debt has reached Rs 5.07 lakh crore, while nearly 77 per cent of the state's revenue is being spent on committed expenditures such as salaries, pensions and interest payments, leaving limited fiscal space for developmental activities.
The report noted that capital expenditure on development remains among the lowest in the country. It said Keralam's capital expenditure stands at just 1.3 per cent of its Gross State Domestic Product (GSDP), one of the lowest among Indian states, despite the state running one of the highest fiscal deficits.
It further highlighted the severity of the treasury crisis, stating that the state relied on Ways and Means Advances for 262 days in 2025 and remained in overdraft for 84 days during the year.
Satheesan said his government has also inherited pending liabilities amounting to Rs 48,733 crore, including dearness allowance (DA) and dearness relief (DR) arrears payable to government employees and pensioners, the report said.
— ANI
Reader Comments
Honestly, 77% on salaries and pensions? That's insane! We need to cut down on that spending if we want any development. But will the government dare to touch employee benefits? 🤔
As a Malayali in Dubai, I'm keeping a close eye on this! The state needs to focus on attracting investments. That 1.3% capital expenditure is embarrassing for a state with such high remittance income. Time to think long-term!
I appreciate the honest assessment, but we need concrete steps, not just reports. DA arrears of ₹48,733 crore is huge - employees were waiting for years. Let's see if the budget has a roadmap to balance welfare with fiscal discipline.
Interesting to see Kerala's challenges. The overdraft situation sounds serious - 84 days in the red is no joke. Hope the new government can turn things around with better fiscal management. Best of luck to CM Satheesan!
The white paper is a good start, but UDF promised so much during elections. Now they're blaming the previous government for everything. Let's see actual action - more capital spending, better infra, and less rhetoric. Action, not just words! 💪
As someone working in
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.