But the downside is the macroeconomic anxieties in Kerala. The unemployment rate of the state is 9.53 per cent, much above the national average of 6.1 per cent. As many as 3.6 million youths are unemployed — including 7,303 medical graduates, 44,559 engineering graduates, 6,413 MBA graduates and 3,771 MCA. Covid-19 has only accentuated unemployment as Gulf migrants return home, putting more pressure on the jobs front. Kerala has cumulative debt touching Rs 1.71 trillion. And on the social and religious front, the state is facing seriously divisive strains.
When you add to this the fact that the Chief Minister’s Office has been directly drawn into a gold smuggling racket with a bureaucrat who was the CM’s right-hand man in custody, it makes for a depressing epitaph of a government that started out with the best of intentions. State Finance Minister Thomas Isaac has led from the front in demanding the centre follow financial federalism in letter and spirit, especially relating to the Goods and Services Tax (GST). Going against its ideological grain, Kerala appointed Gita Gopinath advisor to the government although for the Left, she was deeply entrenched in an institution that is a bulwark of neo-liberalism, the International Monetary Fund.