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This paper evaluates the unique development record of Kerala, India. Despite slow economic growth, the state has experienced unprecedented social growth: increased literacy rates, reduced infant mortality rates, higher life expectancy, and improvements in various other social indicators. The aim of this paper is to examine whether the social expenditures of Kerala are economically sustainable. In order to maintain the current level of social development in Kerala, the state must make adjustments to its policies to focus on equitable economic development. [ABSTRACT FROM AUTHOR]