Archive · 25 Sep 2026
Satheesan Flags Kerala’s Low Capital Spending, High Committed Costs
Chief Minister V D Satheesan said Keralam has a financial problem.
The state spends much of its income on regular bills.
These bills include salaries, pensions and interest on loans.
He said about 80 out of every 100 rupees goes to those costs.
That leaves only 20 rupees for development and welfare programmes.
He also said the state spends less on building long-term assets than the national average and other states.
Raising taxes is difficult because the Goods and Services Tax Council decides tax rates.
Satheesan said more investment and economic activity could help the state earn more money.
Chief Minister V D Satheesan said Keralam faces challenges from low capital expenditure and high committed expenditure.
About 80% of the state’s revenue goes toward salaries, pensions and loan interest, he said.
Only the remaining 20% is available for development and welfare programmes, according to Satheesan.
Keralam’s capital expenditure was lower than the national average and that of other states.
Satheesan called for greater investment and economic activity to raise revenue and improve the state’s fiscal position.
- Who
- Keralam Chief Minister V D Satheesan, who also holds the finance portfolio.
- What
- He highlighted the state’s low capital expenditure and high committed expenditure as major financial challenges.
- When
- Friday, September 25; the year was not specified.
- Where
- At a function in Idukki, Keralam.
- Why
- Because around 80% of state revenue is used for salaries, pensions and loan interest, limiting funds for development and welfare.
- Committed expenditure
- About 80% of Keralam’s revenue, according to Satheesan.
- Main committed costs
- Salaries, pensions and interest on loans.
- Funds remaining
- About 20% of revenue for development and welfare programmes.
- Capital expenditure
- Lower than the national average and compared with other states.
- Tax limitation
- The Goods and Services Tax Council decides tax rates, limiting the state’s ability to raise taxes.
- Proposed response
- Attract more investment and increase financial and economic activity.