The Kerala Public Expenditure Review Committee (KPERC) released its first report of the 7th KPERC, covering 2021-22 to 2023-24. The report highlights that Kerala faces tight financial conditions due to a "less-than-supportive Centre-State fiscal environment." Led by K.J. Joseph, the committee says Kerala’s economy showed "moderate and stable" fiscal discipline despite major challenges. It stresses the importance of Kerala’s own fiscal strength for medium and long-term stability. KPERC points to the need to broaden the tax base, improve tax compliance, and adopt data-driven tax management. "Kerala has not benefited from GST regime," noted the State Assembly’s Estimates Committee. The committee also calls for reprioritising spending towards "productivity-enhancing investments" in physical and human capital, along with better monitoring and efficiency to maintain development within limited funds. On non-tax revenue, KPERC found many sectors like health and education underutilise user fees and charges. The report states that departments should focus on raising resources instead of simply asking for budget funds. Overall, the committee recommends a dual strategy to overcome intergovernmental fiscal limits and strengthen Kerala’s internal revenue sources. Reviewing 2014-15 to 2023-24, KPERC observed Kerala’s finances reflect a "mature welfare economy" but were hit hard by natural disasters and COVID-19. The decade divides into three phases: fiscal stability before 2019-20; acute fiscal stress during 2020-22; and recovery and adjustment from 2021-24.