Thiruvananthapuram, June 30 -- Kerala Chief Minister V.D. Satheesan has warned that Kerala is heading towards a serious fiscal crisis unless the state undertakes fundamental economic reforms, arguing that the existing model cannot sustain employment generation, welfare commitments and long-term development.
He pointed out that 77 per cent of the state's total revenue is locked in committed expenditure, leaving very little fiscal space for development, while capital expenditure has fallen to just 1.3 per cent, among the lowest in the country.
Unless corrective measures are taken immediately, he cautioned, the government could soon be left with little beyond servicing debt and paying interest, making it difficult to create jobs or continue ...