A fiscal status report presented by Chief Minister V D Satheesan in the Kerala Assembly reveals alarming financial figures for the state. Kerala's total outstanding liabilities have surpassed ₹5.07 lakh crore, with unpaid dues and deferred payments reaching nearly ₹49,000 crore. The report, prepared by a committee led by former Cabinet Secretary K M Chandrasekhar, indicates that salaries, pensions, and interest payments consume 77% of the state's revenue, severely restricting capital expenditure, which stands at only 1.3% of the Gross State Domestic Product (GSDP). Additionally, the Kerala Infrastructure Investment Fund Board (KIIFB) is burdened with loan liabilities of ₹21,000 crore and has projects worth ₹35,000 crore awaiting funding. The report also highlights the state's reliance on emergency borrowing from the Reserve Bank of India (RBI) to meet daily cash needs, raising concerns about fiscal sustainability. The findings question the effectiveness of KIIFB as its borrowing costs exceed those of direct government loans, complicating the future of the institution.