Daijiworld Media Network – Thiruvananthapuram

Thiruvananthapuram, Jun 19: Kerala Chief Minister V D Satheesan on Friday presented the first Budget of the United Democratic Front (UDF) government for the financial year 2026-27 in the State Legislative Assembly.

Satheesan, who also holds the Finance portfolio, presented the Budget amid growing concerns over the state's financial condition highlighted in a recently tabled White Paper on Kerala's finances.

As part of the customary pre-Budget exercise, printed copies of the Budget were delivered to the Chief Minister's official residence by Additional Chief Secretary (Finance) K R Jyothilal and officials from the Printing Department.

The Budget presentation comes weeks after the UDF government released a White Paper outlining what it described as a severe fiscal crisis inherited from the previous administration.

According to the report tabled in the Assembly on June 4, Kerala's total public debt has risen to Rs 5.07 lakh crore. It also noted that nearly 77 per cent of the state's revenue is being spent on committed expenditures such as salaries, pensions and interest payments, leaving limited resources for developmental projects.

The report further stated that Kerala's capital expenditure stands at only 1.3 per cent of its Gross State Domestic Product (GSDP), among the lowest in the country, despite the state recording one of the highest fiscal deficits.

Highlighting the treasury situation, the White Paper said the state depended on Ways and Means Advances for 262 days during 2025 and remained in overdraft for 84 days.

The report also pointed to pending liabilities amounting to Rs 48,733 crore, including dearness allowance (DA) and dearness relief (DR) arrears payable to government employees and pensioners.

The Budget is expected to outline the UDF government's strategy for addressing the state's financial challenges while balancing welfare commitments and developmental priorities.