Kerala ranks worst in quality of expenditure in india.

According to the Fiscal Health Index 2023, Kerala ranked lowest in the "Quality of Expenditure" sub-index among 18 major states. Key issues include: **Minimal Capital Expenditure**: Just 3.5% of total spending in 2022-23, with steep declines in social (-84.3%) and economic (-60.1%) sectors since 2018-19. **High Routine Costs**: Committed expenditure like salaries and pensions rose to 64.6% of revenue receipts, leaving little for developmental projects. We really needs to rethink our spending, or we’re going to end up drowning in debt with no way out. Source: [NITI Aayog's Fiscal Health Index 2023](https://www.niti.gov.in/sites/default/files/2025-01/Fiscal_Health_Index_24012025_Final.pdf).