Kerala Chief Minister VD Satheesan on Thursday tabled a White Paper in the state Assembly showing a detailed picture of Kerala’s financial condition. The report revealed that the state is carrying an outstanding debt burden of Rs 5.07 lakh crore. It also highlighted rising liabilities, increasing losses in public sector undertakings (PSUs), and low capital expenditure. The document quickly became the centre of a heated debate between the ruling United Democratic Front (UDF) government and the opposition Left Democratic Front (LDF).

The White Paper stated that Kerala’s total outstanding liabilities have reached Rs 5.07 lakh crore. It pointed out that 77 per cent of the state’s total revenue receipts (TRR) are being spent on committed expenditure. The report further noted that interest payments alone account for 20.9 per cent of the state’s total revenue receipts. These figures were presented as indicators of the financial pressure currently faced by the state.

The document also drew attention to Kerala’s capital expenditure. According to the report, capital expenditure stands at only 1.3 per cent of the state's Gross State Domestic Product (GSDP). The government said this is among the lowest levels recorded by any Indian state.

The financial condition of state-run public sector enterprises was another major concern highlighted in the White Paper. It revealed that the accumulated losses of PSUs increased significantly over the past few years. These losses rose from Rs 31,571 crore in 2021-22 to Rs 78,851 crore in 2024-25.

The report also examined the financial position of the Kerala Infrastructure Investment Fund Board (KIIFB). According to the government, KIIFB currently has a loan liability of Rs 21,000 crore. At the same time, projects worth Rs 35,000 crore remain without funding. The White Paper suggested that this situation could pose additional financial challenges for the state.

Another key finding of the report was the burden of pending liabilities inherited from the previous administration. The government said it took over unpaid liabilities amounting to Rs 48,733 crore. These include pending dearness allowance (DA) and dearness relief (DR) arrears, among other obligations.

While presenting the document in the Assembly, Satheesan described it as a factual assessment of the state’s finances. He said, "It is a status report of the financial health of the state. It is being brought out to inform the public about the economic condition of Kerala."

The Chief Minister also rejected claims that the White Paper was politically motivated. He said the report had been prepared under the supervision and leadership of the Finance Department. According to him, the information used in the document was already available in the public domain through budget documents and other official records.

Defending the report, Satheesan said, "It was approved by the Cabinet, and it is not a political document. The government will seek expert advice wherever required, as it does not believe it knows everything." He also noted that the UDF government had come to power with a mandate that differed from the previous administration.

The opposition strongly objected to the White Paper and questioned the process through which it was prepared. Former Finance Minister KN Balagopal argued that the document had not been drafted by the Finance Department in the traditional manner. He alleged that internal government accounts may have been shared with private individuals during its preparation.

Balagopal claimed that such actions could amount to violations of constitutional provisions, official secrecy rules, and established government procedures. He said, "All the white papers in the past were prepared by the Finance Department. It is a political document. If this document is allowed to be tabled, it would create a wrong precedent for the future."

Former Chief Minister and current Leader of the Opposition Pinarayi Vijayan also raised concerns over the preparation of the report. He said it was unusual that the White Paper had not been drafted directly by the Finance Department. While clarifying that the opposition was not against the government seeking expert advice, Vijayan maintained that such reports had traditionally been prepared by the department itself.

Responding to the criticism, Satheesan questioned how the opposition could describe the report as politically motivated or claim that it violated rules without first examining its contents. He defended the government’s decision and maintained that the document was based on publicly available information.

After hearing arguments from both the government and the opposition, Speaker Thiruvanchoor Radhakrishnan delivered his ruling on the matter. He allowed the White Paper to be tabled in the Assembly and dismissed concerns regarding procedural violations.

The Speaker said, "The chair does not find any violation of the rules in the tabling of the White Paper. It has become a part of the Assembly records."

With the Speaker’s decision, the White Paper was officially placed on record. However, the sharp exchanges between the UDF government and the LDF opposition showed that Kerala’s financial condition and the findings of the report are likely to remain a major political issue in the state in the coming days.