The debt sword over states: lessons from Kerala's fiscal stress

Question (10 marks, ~150 words):

The rising debt of states like Kerala reflects deeper structural problems in India's fiscal federalism. Examine and suggest reforms.

Frame: Article 293, FRBM ~3% GSDP, Finance Commission. Stress: revenue deficit, salaries/pensions, end of GST compensation (2022), shrinking untied grants, cesses outside divisible pool, off-budget borrowing (KIIFB, CAG flags). Reforms: own revenue, expenditure quality, end off-budget, fair 16th FC devolution. Balanced conclusion on cooperative fiscal federalism.