Kerala Finance Minister Refutes 'Empty Treasury' Claim, Cites Fiscal Data

K.N. Balagopal, outgoing Finance Minister of Kerala, on Friday rejected claims by Congress leader V.D. Satheesan that the incoming United Democratic Front (UDF) government has inherited an empty treasury, saying the state's finances are in a 'comfortable position.' Balagopal cited a cash balance of ₹6,000 crore, a debt-to-GSDP ratio of 33.4%, and revenue exceeding ₹1 lakh crore as evidence, referencing Reserve Bank of India, Comptroller and Auditor General, and Central government reports.

Satheesan, Kerala's Leader of Opposition during the 2021–2026 term, had said at a post-election press conference that the treasury was so empty a cat and her newborns had taken residence there. Balagopal dismissed the remark as inaccurate, asking how the state could have paid salaries and welfare pensions if the treasury were truly empty. He noted that unlike Congress-ruled states such as Himachal Pradesh and Karnataka, Kerala faced no delays in salary or pension disbursements.

Balagopal highlighted that Kerala’s total debt stands at ₹4.8 lakh crore, below the projected ₹6 lakh crore based on historical trends, and that fiscal deficit remains within prescribed limits. He credited improved tax collection and the 16th Finance Commission’s increased share for Kerala—from 1.92% to 2.382%—to the outgoing LDF government’s financial management. He also defended the Kerala Infrastructure Investment Fund Board (KIIFB) as a successful model for infrastructure financing.

The new UDF government, which won 102 seats in the April 9 assembly elections, is set to take charge shortly. V.D. Satheesan has pledged better financial management and tax administration to strengthen state revenues. The court will resume hearing on Tuesday.