Kerala’s Budget (2026–27) is an exercise in fiscal realism rather than profligacy. As a result, Kerala’s own revenue now finances just over half of its revenue expenditure, showing a structural squeeze, given the varied expenditure needs of the State. Also read: Kerala budget 2026 highlightsOn the expenditure side, total spending is budgeted at about ₹2.40 lakh crore, nearly 14% of GSDP. Revenue expenditure dominates, while capital outlay remains modest at ₹19,451 crore. In an ageing economy, higher female labour participation is not merely a social goal but a fiscal necessity.