Kerala’s Finances Strong: K.N. Balagopal Confirms No Deficits Amidst Fiscal Management.

K.N. Balagopal, the outgoing Finance Minister of Kerala, firmly counters senior Congress leader V.D. Satheesan’s assertion that the United Democratic Front (UDF) will inherit an empty treasury. Balagopal maintains that Kerala’s financial standing is robust, highlighting fiscal indicators such as revenue, fiscal deficit, and debt levels that reflect a favorable economic position. He specifically pointed to the State’s cash balance of approximately ₹6,000 crore, reassessing the narrative of an empty treasury by asserting that the state is, in fact, in good financial health.

Balagopal argues that his statements are grounded in data from the Reserve Bank of India and various government reports, showing significant revenue growth to over ₹1 lakh crore. He emphasized the state’s improved debt-to-Gross State Domestic Product (GSDP) ratio, which has decreased from nearly 39% during the pandemic to 33.4%. Unlike other Congress-ruled states facing financial challenges, Kerala continues to manage salary and pension payouts successfully, further debunking claims of a dire financial situation.

The Finance Minister noted that the Left Democratic Front (LDF) government is stepping down with accomplished tax collection metrics and minimal outstanding dues. He pointed out that the successful functioning of the Kerala Infrastructure Investment Fund Board (KIIFB) has also played a crucial role in infrastructure development. Balagopal expressed optimism that the new government can build upon this foundation, reiterating that the financial stability achieved will not impose significant burdens on the incoming administration.