Calling the White Paper on the financial status of Kerala tabled by Chief Minister V.D. Satheesan in the Legislative Assembly on Thursday an exercise in “fiscal conservatism”, Communist Party of India (Marxist) central committee member and former Finance Minister T.M. Thomas Isaac said that the United Democratic Front (UDF) government should make it clear whether its priority was fiscal discipline or implementation of developmental and welfare schemes, including the Indira guarantees.“From the White Paper, it is clear that the government is not keen on implementing the Indira guarantee schemes. Kerala’s quantum jump in basic infrastructure in recent years is about to come to a grinding halt. The biggest drawback of the White Paper is this line of thinking, wherein fiscal discipline is given paramount importance over development and welfare efforts,” he said at a press conference here on Thursday.Dr. Isaac said that the UDF as well as the experts who prepared the White Paper ignores the basic fact that the core reason for the financial crisis faced by Kerala is Centre-State relations.“Kerala’s own revenues form 75% of its revenue income, while the Union government provides only 25%. For the rest of the States, the Central share is 50%. Why is the UDF silent on this neglect by the Centre? The Centre’s and BJP’s injustice towards Kerala does not figure anywhere in the UDF’s picture of the State’s economy. It also supports the Union government’s stance on Kerala Infrastructure Investment Fund Board (KIIFB), which was formed with an aim to keep the State’s developmental and welfare efforts going even amid such an approach from the Centre,” he said.Regarding the claims on the State’s liabilities, he said that the White Paper looks only at a limited period of 10 years.“In 2004, the State’s liabilities were 42% of its GSDP, while now it is only 39%. When you talk about borrowings, will you consider the money spent on education as revenue expenditure or capital expenditure, because when the State spends money on educating people, they go outside, earn money and send remittances which keeps the economy going. We had decided that we need to spend on education, health and basic infrastructure. The infrastructure that was built through KIIFB would have taken 25 years through the normal Budget, but by then the world would have changed. Kerala needs all this now, not in the future,” he said.Dr. Isaac said that the LDF managed the economy well for 10 years despite the negative attitude of the Centre towards Kerala. “We increased welfare pensions from ₹600 to ₹2,000 as well as had major spendings in the education and health sectors. The important thing is to spend money for the needs of the people. Now that seems to have changed. This will have long term implications. Not to forget, the plan to privatise the State’s public sector units,” he said. Published - June 04, 2026 09:19 pm IST