The main issue is Kerala’s highly vulnerable fiscal situation, arguably the worst in its history. Kerala’s total debt is now around ₹6 lakh crore, up from ₹1.5 lakh crore when we left government 10 years ago. In a decade, it has risen fourfold, excluding other liabilities.
For example, the state has seen the highest price rise in India over the past 12 months. There has been little effective market intervention, and the Civil Supplies Corporation, which is meant to handle this, is burdened by huge government debt.
The electricity board, once profitable, is around ₹50,000 crore in debt. Tariffs have been increased four times, along with surcharges, and further hikes are being sought.
Public healthcare is in serious trouble, with shortages of medicines due to unpaid dues by the Medical Services Corporation, as well as lack of equipment and overcrowding, with sometimes three patients to a bed.
The Kerala Water Authority is also under ₹4,000 crore in debt. At the same time, the government owes around ₹1 lakh crore to employees, pensioners and teachers. Welfare boards, which rely on worker and government contributions, are struggling, and many beneficiaries are not even receiving pensions.
Higher education has also collapsed. There are no permanent vice-chancellors in universities, no principals in government colleges, and ongoing conflict between the Governor and the government has worsened the situation.
CPM is heading towards disintegration. In Bengal it took 33 years; here it has taken just 10. This is the beginning of that process.