The Comptroller and Auditor General of India (CAG) has released a report on the financial condition of Kerala, stating that expenditure reforms are urgent. It said that while the state’s economic growth is continuing, the lack of revenue growth is worrying. The report explained that a large part of the government’s revenue is going towards salaries, pensions and interest payments. This is reducing the funds available for development programmes. The CAG suggested that expenditure control, revenue enhancement measures and effective financial management are necessary for long-term fiscal sustainability.
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Expenditure reforms are urgent in Kerala: CAG
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tmanasa
- June 24, 2026
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The Comptroller and Auditor General of India (CAG) has released a report on the financial condition of Kerala, stating that expenditure reforms are urgent. It said that while the state’s economic growth is continuing, the lack of revenue growth is worrying. The report explained that a large part of the government’s revenue is going towards salaries, pensions and interest payments. This is reducing the funds available for development programmes. The CAG suggested that expenditure control, revenue enhancement measures and effective financial management are necessary for long-term fiscal sustainability.
