Kerala not in a debt trap; 15th in the country, says CAG report

Thiruvananthapuram: According to a report prepared by the Comptroller and Auditor General of India, which reviewed the financial position of 28 states, Kerala ranks fifteenth in the ratio of Gross State Domestic Product to debt. The report, based on an examination of state accounts over the ten-year period up to 2022–23, provides a strong rebuttal to those who claimed that Kerala is in a debt trap and to the opposition that echoed the claim. Eight states have public debt above thirty percent, while fourteen states fall between twenty and thirty percent. Kerala is in this category, with a public debt of 24.71 percent. Although the report covers only up to 2023, subsequent budget documents show that Kerala’s public debt has declined further, to 23.38 percent in 2023–24 and to 23.33 percent in 2024–25. The CAG report reiterates that Kerala is not in a dangerous position. The CAG report also responds to opposition leaders, including the Leader of the Opposition, Congress leaders, and pro- UDF media outlets who criticise, without factual basis, that Kerala lags in tax collection. Kerala is one of eight states in the country where own revenue accounts for more than sixty percent of total revenue receipts. The state’s own revenue stands at 65.61 percent, and it has more than doubled in recent years.