Kerala government faces electricity crisis, fiscal strain in first 100 days

The Congress-led United Democratic Front government has navigated a turbulent opening quarter marked by popular welfare schemes, fiscal constraints and mounting political controversies since Chief Minister V.D. Satheesan took office three months ago.

The 62-year-old leader and his 20-member Cabinet have confronted unexpected challenges including a monsoon-season electricity crisis while attempting to deliver on an ambitious 'Vision 2031' framework spanning 1,291 schemes across government departments. The government has also announced a 100-Day Action Plan starting July 1, covering 602 projects across 50 departments.

Early wins draw women voters, clash with operators

The UDF scored immediate approval from sections of the electorate by announcing the 'Priyadarshini' scheme making 'Ordinary' bus services free for women on Kerala State Road Transport Corporation routes, though private bus operators opposed the move. The decision to scrap the previous Left Democratic Front government's SilverLine semi high-speed rail project—criticised for its allegedly unilateral and unscientific alignment—also resonated with large sections of the public.

A dedicated Department for Elderly Welfare, which Satheesan described as the first of its kind in the country, aligns with plans to develop a 'Kerala silver economy' for the ageing State. 'Operation Toofan,' led by Home Minister Ramesh Chennithala to tackle narcotics, has drawn positive reviews.

Centre blocks port ambitions, fiscal picture darkens

The Centre's denial of clearance for the government's 'Port City' project dealt Satheesan a major setback, citing the absence of a feasibility study or Detailed Project Report. Despite this, the Chief Minister formally launched Mission Samudra on August 18, part of plans to transform Keralam into a maritime economy and premier aviation-logistics hub.

A White Paper on State finances, drafted by a panel headed by former Union Cabinet Secretary K.M. Chandrasekhar and laid in the Assembly on June 4, placed State liabilities at ₹5.07 lakh crore, warning that "behind Kerala's social achievements lies a fiscal structure that is under serious and growing strain". The Revised Budget slashed the plan outlay for 2026-27 by ₹5,000 crore to ₹30,370 crore, citing a "significant shortfall in anticipated revenue".

The government has appointed a panel headed by former bureaucrat Sudha Pillai to restructure the Kerala Infrastructure Investment Fund Board, which drew criticism from the Union government and the Comptroller and Auditor General for 'off-budget' borrowings.

Controversies fuel Opposition attacks

The CPI(M)-led Opposition, reduced to just 35 of 140 Assembly seats in May, has seized on multiple controversies. Satheesan, who describes himself as a "Nehruvian socialist," faced criticism over budget announcements on attracting private investment and government stances on the PM SHRI Central scheme and non-Muslim appointments to the State Waqf Board.

Appointments of personal staff to Electricity Minister Sunny Joseph and Health Minister K. Muraleedharan triggered resignations amid nepotism and internal power struggle speculation. Government pleader appointments exposed differences within the Congress and UDF, with several appointments drawing criticism for allegedly favouring the Sangh Parivar and in some cases the CPI(M).

At the time of filing, the government is battling CPI(M) accusations over whether it has ceded executive powers to the Raj Bhavan after Governor Rajendra Vishwanath Arlekar summoned the State Police Chief without informing the government, though Satheesan conveyed strong objections and noted similar summons occurred during LDF rule. A separate row has erupted over Meta's removal of posts allegedly critical of the government from social media platforms, which Satheesan denies his government requested.

Source: The Hindu