<h1>Fiscal federalism: Centre followed Finance Commission recommendations despite Kerala's fiscal strain attributed to state fiscal policies.</h1> The Finance Minister attributed Kerala's fiscal crisis to state-level fiscal policies while asserting that Centre-to-state transfers increased and complied with Finance Commission recommendations. She cited a Supreme Court observation on borrowing limits that Kerala over-utilised fiscal space and a CAG audit finding that most 2022-23 debt receipts were used to repay outstanding debt, which she presented as evidence of poor state debt management.