Kerala Chief Minister Pinarayi Vijayan during a press conference at AKG Centre, in Thiruvananthapuram on Tuesday. | Photo Credit: NIRMAL HARINDRAN / THE HINDU

The Left Democratic Front (LDF) led by CM Pinarayi Vijayan, is aiming for something unprecedented since the formation of Kerala in 1956 — three consecutive Assembly wins. Standing at the precipice of history, the biggest hurdle for Vijayan is Kerala’s growth slowdown over the past decade. Despite strong social indicators, GSDP growth has been sluggish, lagging other southern States. This is due to Kerala’s GSDP being dominated by low-productivity services such as tourism and remittance-driven consumption, with limited expansion in high-growth sectors like IT or manufacturing. High committed expenses at 72 per cent of revenue receipts in FY26, limits the government’s ability to spend on capital formation, education or health. The State is having to borrow to meet the high revenue expenditure, leading to a large pile-up of debt. Given the current West Asia crisis, the dependence on remittances, which constitute approximately 16–20% of GSDP of Kerala, raises further questions for the government

Published on April 7, 2026