‘Kerala trapped in debt trap’

If we look at the last 10 years, what are the major achievements of your government on the industrial front?

The core vision of the Left Democratic Front (LDF) government over the past decade has been to ensure broad social welfare while taking development and infrastructure to unprecedented heights. We strongly believe that true industrial progress must go hand in hand with social progress.

On the welfare front, we have raised public health and education systems to global standards. Under the Aardam Mission, 779 primary health centers were converted into family health centers and 5,416 Janaki Arogya Kendras were established. In the education sector, the Public Education Rejuvenation Mission through the Kerala Infrastructure Investment Fund Board (KIIFB) constructed 639 new school buildings and installed 7,000 robotic laboratories in 2,000 schools.

We strengthened social welfare by increasing pension from ₹600 to ₹2,000, benefiting 6.2 million beneficiaries. Through the LIFE (Livelihood Inclusion and Financial Empowerment) mission, we provided safe, solid houses to 500,000 families. Through targeted, decentralized interventions, Kerala became the first state to eradicate extreme poverty, lifting 64,006 families out of crisis.

NITI Aayog’s Multidimensional Poverty Index recognizes Kerala as the state with the lowest poverty rate (0.7 percent) in the country. This reflects our commitment towards an inclusive Kerala.

To drive overall growth, we developed infrastructure on a scale never seen before. Projects that were once dismissed as “impossible” – such as the GAIL pipeline, the Edman-Kochi Power Highway and major national highway developments – have now become reality due to the political will of the government. We upgraded 17,749 km of Public Works Department roads and built the historic Vizhinjam International Port.

Based on this world-class infrastructure and social foundation, Kerala’s industrial sector has grown dramatically. We are rapidly transitioning to a knowledge economy with initiatives like K-FON (Kerala Fiber Optic Network), which has made internet access a basic right for citizens and is already serving 100,000 customers. Our information technology exports and startup ecosystem is thriving, with over 7,000 startups active in the state.

Through initiatives like Enterprise Year, we facilitated the creation of over 300,000 micro, small and medium enterprises and created over 750,000 jobs. These efforts, coupled with the K-SWIFT (Kerala Single Window Interface for Fast and Transparent) single-window clearance system, have catapulted the state to the No. 1 rank in ease of doing business, proving that Kerala is a leading destination for modern, inclusive growth.

According to the Commission, Kerala is one of the weakest states in terms of fiscal management. What is your take on this?

The real issue is that Kerala has effectively used its resources to improve the well-being of citizens and demonstrated a democratic, secular and socially inclusive development model, while the Central government has tried to constrain the state’s finances.

The Commission’s Fiscal Health Index penalizes states that prioritize social spending. Ironically, states that top this index often rank low on social indices, raising questions about what fiscal consolidation alone achieves.

The narrative that Kerala is in a “debt trap” or has weak fiscal management is a deliberate distortion aimed at hiding forceful federal policies.

The actual data tells a different story.

Over the past five years, the state’s own tax revenue grew 1.8 times – from ₹47,661 crore in 2020-21 to ₹83,731 crore in 2025-26 (revised estimates) – while the state’s own non-tax revenue grew 2.6 times, from ₹7,327 crore to ₹18,761 crore. Revenue self-sufficiency improved, with the state financing about 64 per cent of its revenue expenditure through its own receipts in 2023-24 and 60 per cent in 2024-25 (FY25), which was higher than the statewide average.

Kerala’s debt-to-gross state domestic product (GSDP) ratio, which peaked at 38.47 per cent in 2020-21 during the pandemic, is set to decline steadily to 34.87 per cent in FY2025. The interest rate on public debt is lower than GSDP growth, indicating sustainable debt levels.

The central government has inflated Kerala’s debt figures by misinterpreting Article 293(3) of the Constitution to include borrowings of special purpose vehicles like KIIFB – backed by government guarantees, not direct loans – and even public account balances. This logic does not apply to central agencies like the National Highway Authority of India. Despite these constraints, Kerala has adhered to the Fiscal Responsibility Act, increased its revenues and ensured uninterrupted growth.

The recent local body elections saw a wave of United Democratic Front (UDF). Do you think the assembly elections will be different?

Electoral dynamics differ at different levels of democracy. However, for the assembly elections, Kerala voters prioritize comprehensive governance, systemic development and a clear vision for the future of the state.

LDF has a proven track record of delivering on promises. In the last term, we had fulfilled 580 out of 600 promises made in the manifesto and in this term we are systematically implementing the 900 promises made. We do not have decentralized power and money like any other state, with over ₹1.23 trillion transferred to local bodies in the last decade. Through these bodies, we implemented the LIFE Mission – delivering over 500,000 households – and implemented the Extreme Poverty Alleviation Project, making Kerala the first state in India with near-zero extreme poverty.

The people of Kerala have seen this government standing with them during floods, Nipah virus outbreak and pandemic. They know that LDF represents a credible, people-centric Kerala model. Given the overall progress and stability of the state, I am confident that voters will continue to support the LDF.

BJP’s vote share has increased in recent times. Is this a cause for concern for LDF and UDF?

The social landscape of Kerala is rich with Renaissance heritage and the struggles of the working class under the communist movement. Our state is based on secularism, scientific temper and communal harmony.

LDF has historically been the strongest shield against the divisive agenda of the Sangh Parivar. While right-wing forces use resources and false narratives to polarize voters, Kerala’s secular fabric is resilient. Our concern is vigilance, not fear.

The difference between LDF and UDF is ideological clarity. The Congress and the UDF have sometimes adopted a “soft Hindutva” stance, allowing leaders to shift towards the Bharatiya Janata Party. LDF strongly opposes both majority and minority communalism. The people of Kerala know who truly upholds secular values.

We have seen both cooperation and conflict in Centre-State relations in the last 10 years. How do you assess this relationship?

We advocate cooperative federalism. Nevertheless, over the past decade, the central government has often practiced coercive federalism.

The cooperation was largely due to Kerala’s strong political will and willingness to bear the financial burden. For example, national highway development was abandoned under the UDF; Our government revived it by covering 25 per cent of the land acquisition cost – about ₹6,000 crore – a condition not imposed on any other state. GAIL pipeline was completed with public participation.

Conflicts arise from attempts to weaken Kerala’s democratic mandate: financial restrictions, misuse of central agencies, denial of disaster relief (for example, after the Wayanad tragedy), and interference through the office of the Governor. These highlight the need to strengthen and democratize India’s federal structure.

While the Congress struggles to project a chief ministerial face, the LDF appears to have clarity. What is the secret behind this leadership stability?

The campus is a little out of the way. The LDF’s strength lies in not relying on just one “chief ministerial face”.

In the LDF, leadership is about executing a collective vision, guided by our manifesto, structured policy discussions and the collective wisdom of our parties. People trust us because they see a disciplined and united front focused on development and public welfare. When politics gives priority to people over personality, stability and clarity of purpose come naturally.