The Kerala Finance (No. 2) Act, 2026

The Kerala Finance (No. 2) Act, 2026

The Kerala Finance (No. 2) Act, 2026, amends the Kerala Ceiling on Government Guarantees Act, 2003, to impose stricter fiscal discipline on the State Government. It establishes a clear ceiling on the total outstanding government guarantees that the state can issue. As of April 1st each year, the total guarantees must not exceed the lower of two specific financial benchmarks: 100 percent of the total revenue receipts from the preceding year or 10 percent of the Gross State Domestic Product for the current financial year. This regulation prevents the state from over-leveraging its finances, ensuring long-term economic stability for the state.

PDF: pending for this language.