Thiruvananthapuram

Kerala Chief Minister Pinarayi Vijayan on Tuesday said states across India are facing increasing fiscal constraints even as their responsibilities in public service delivery and development continue to expand, underlining the need for predictability and fairness in intergovernmental fiscal arrangements.

Addressing the valedictory session of the Vision 2031 International Conference here, Vijayan said states today play a critical role in delivering essential services and driving development, but their fiscal space has become progressively tighter due to changes in borrowing limits and the structure of central transfers.

Referring to Kerala’s experience, he said the state has consistently mobilised a high share of its own revenues and maintained strong public service delivery, despite emerging challenges in the federal fiscal framework. The issue, he added, should not be viewed through the prism of confrontation but as a matter of democratic governance.

“Cooperative federalism requires predictability, fairness and respect for constitutional roles. States must have the fiscal capacity to fulfil the responsibilities entrusted to them, particularly in health, education, social protection and infrastructure,” the Chief Minister said.

Despite fiscal pressures, Vijayan said Kerala has continued to prioritise welfare, education and public services. Initiatives supporting students, workers and vulnerable sections reflect the state’s effort to balance fiscal responsibility with social commitment, he added.

Highlighting Kerala’s secular ethos, the Chief Minister said secularism in the state is not merely a constitutional principle but a lived social practice visible in schools, neighbourhoods and workplaces. At a time when many societies, including India, are witnessing growing polarisation, Kerala has largely preserved social harmony through inclusive public institutions and a culture of mutual respect, he said.

Quoting Nobel laureate economist Amartya Sen, Vijayan said social cohesion is a precondition for development, as trust between communities and confidence in institutions are essential for economic activity, innovation and investment. Kerala’s secular ethos, he noted, has been one of its most valuable economic assets.

He said Vision 2031 represents a collective exercise in reflection and dialogue aimed at understanding Kerala’s past, critically assessing its present and shaping its future as the state approaches its 75th year. The formulation of public policy in Kerala, he added, has historically been participatory, shaped by dialogue between the state and society.

Tracing the state’s development journey—from land reforms and investments in public education and health to social security and decentralised planning—Vijayan said Kerala’s experience demonstrates that markets alone cannot deliver social justice. Economic growth, he stressed, must be judged by its ability to secure dignity and basic security for all.

Kerala now stands at a new historical moment, he said, with the challenge being to transform a high human development society into a productive, knowledge-driven economy that generates quality employment, fosters innovation and remains environmentally sustainable without abandoning social commitments.

Underscoring the state’s tradition of participatory governance, Vijayan recalled the People’s Plan Campaign of 1996 as a landmark in decentralisation. He also expressed gratitude to Congress veteran Mani Shankar Aiyar for his remarks on Kerala’s decentralisation achievements, noting that its political roots can be traced back to the first Communist ministry led by E M S Namboodiripad.

Acknowledging the need for further reforms, the Chief Minister said the government is considering comprehensive legislative changes to the Kerala Municipal and Panchayati Raj Acts to strengthen administrative capacity, financial autonomy and accountability.

READ MORE: Brotherhood is necessary for growth: Grand Mufti to PM Modi

Kerala’s future strategy, he said, rests on three interlinked principles—growth with quality employment, democratic participation and social justice. “The Kerala of 2031 must be prosperous, innovative and resilient,” Vijayan said, adding, “but above all, it must remain democratic and secular in spirit.”