How Keralam can overcome its legacy infrastructure deficit
Former Kerala Finance Minister T.M. Thomas Isaac argues that the state's persistent infrastructure deficit cannot be solved by traditional budgetary resources alone. He advocates for the use of the Kerala Infrastructure Investment Fund Board (KIIFB) as a special purpose vehicle to mobilize private and market capital to bypass federal fiscal constraints.
Why it matters
The article highlights the tension between state-level development goals and federal fiscal policies, offering a model for sub-national governments to fund large-scale infrastructure projects through securitized revenue streams.
How Keralam can overcome its legacy infrastructure deficit left T.M. Thomas Isaac https://th-i.thgim.com/public/incoming/1uihhg/article71600730.ece/alternates/FREE_1200/NH17ThomasIsaac04.JPG NIRMAL HARINDRAN / THE HINDU THIRUVANANTHAPURAM, KERALA, 17th March, 2026. (FOR STORY) Senior CPI(M) leader and former State Finance Minister, Thomas Isaac at his residence in Thiruvananthapuram on Monday. PHOTO: NIRMAL HARINDRAN / THE HINDU The accumulated gap cannot be overcome within a reasonable time frame by budgetary resources alone, says T.M. Thomas Isaac, former Finance Minister of Keralam, underscoring the importance of a mechanism like KIIFB for the State Keralam has been universally hailed for its social sector investment and achievements. In contrast, the infrastructure of the State has woefully been lagging behind. This backwardness is a major impediment to industrial investment in the State. The public investment in infrastructure has been inadequate.
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