What happened
When Kerala's new UDF government, led by Chief Minister VD Satheesan, published a 195-page white paper on the state's finances in June 2026, it found that Rs 48,733 crore in payment arrears had accumulated under the outgoing LDF administration — with Rs 77 of every Rs 100 in government inflows already committed to salaries, pensions, and interest payments. The opposition response, led by former Finance Minister KN Balagopal, was not to dispute the figures. Instead, Balagopal alleged that handing Finance Department documents to the outside committee that compiled the paper constituted a breach of oath and the leaking of state secrets. Former Finance Minister TM Thomas Isaac separately alleged that a substantial portion of the white paper had been generated using AI tools — a charge that, if accurate, would mean the AI had independently arrived at Rs 48,733 crore. CM Satheesan noted the paper was approved by the full cabinet. The debt figure went unchallenged.