The Kerala Cabinet has taken several key decisions, including recommending a CBI investigation into the death of former Kannur ADM Naveen Babu and presenting a financial white paper in the Assembly that details a massive state debt of ₹5.07 lakh crore. The white paper highlights a severe fiscal crisis, revealing that the state’s total liabilities have reached 35.5% of its Gross State Domestic Product (GSDP), which is significantly higher than the national average of 29.2%.

According to the white paper, Kerala’s interest expenditure consumes 17.73% of its total revenue expenditure, compared to the national average of 11.99%. Development expenditure accounts for only 39.9% of the state’s total spending, while the national average stands at 63.5%, as a major portion of Kerala’s funds goes towards committed expenditures such as salaries, pensions, and interest. Furthermore, the document reveals a massive shortfall of ₹20,500 crore in the state’s planned ₹35,000 crore budget, primarily caused by the 16th Finance Commission’s decision to abolish the Revenue Deficit Grant and a reduction in the state’s share of central taxes.

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In other major decisions, the Cabinet resolved the paddy procurement issues in Palakkad by bringing primary cooperative societies under Supplyco, with funding backed by an SBI-Kerala Bank consortium. The government also approved a compassionate appointment for Naveen Babu’s daughter Niranjana Nair in the Revenue Department, sanctioned ₹14 lakh each to the dependents of those deceased in a recent blast incident, and announced a 52-day trawling ban from June 10 to July 31, 2026.