Kerala’s Redistributive Policy: An Analysis of the State’s Public Expenditure Policies
Megha Susan Philip and K Gayithri
Abstract
The paper is an attempt to critically assess the public expenditure policies of Kerala from 1980 till 2025. The state has always been at the forefront of the development discourse, given its welfare-oriented approaches that led to its social advancements. Public expenditure policies have played an immense role in the state’s achievements. However, the rising economic inequalities and marginalities raise critical questions on the effectiveness and direction of its fiscal policy. Using secondary data sources, this paper attempts to trace the direction of the state expenditure policy. The findings reveal that there is a declining prioritisation of social and economic services spending in the overall budget of the state, particularly in the post-FRA and post-reform phases. Expenditure on general services with lesser redistributive outcomes have grown during the same period. The over-reliance of the state on the central transfers majorly in the form of tied transfers curtails the state’s ability to manoeuvre developmental activities. Though gender budgeting is a commendable approach by the state to bring about gender inclusivity, there are still constraints in the form of monitoring their efficiency. Overall, the state has shifted its focus from redistributive developmental activities to maintenance-oriented policies, which need to be restructured focussing on equity, efficiency and autonomy.