Timely, Targeted Initiatives Essential

K J Joseph, director of Gulati Institute of Finance and Taxation (GIFT), Thiruvananthapuram, said the marginal decline in 2024-25 reflected a combination of domestic fiscal constraints and external economic pressures.

- Rajesh Abraham @Kochi

"The tightening of borrowing limits imposed by the Union government significantly reduced Kerala's fiscal flexibility, resulting in a cutback in capital expenditure, which is crucial for stimulating growth. At the same time, productive sectors especially agriculture, and construction saw slower expansion in the previous fiscal compared to the national average," he said.