In a challenging environment of volatile intergovernmental fiscal transfers and heightened macroeconomic uncertainties, Kerala Finance Minister K.N. Balagopal presented the State’s Budget for 2026-27 on Thursday (January 29, 2026), the final full Budget of the current Left Democratic Front government ahead of the Assembly elections. Prudent public debt managementKerala’s public debt management merits particular attention. In an era of volatile geopolitics and intergovernmental fiscal relations, Kerala 2026-27 Budget stands out with fiscal resilience. The writer is Professor, NIPFP, and member, Governing Board of International Institute of Public Finance (IIPF) - World Forum of Public Finance economists, Munich