Kerala white paper shows 5.07L/cr debt, CM Satheesan warns
Kerala uses 77% revenue for salaries/pensions/interest 
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.
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.
The Kerala Infrastructure Investment Fund Board is feeling the squeeze too.
Its borrowing costs are higher than the state's own rates, raising concerns about how sustainable its financial model really is.
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