Thiruvananthapuram:The Kerala State Budget for 2025-26 will be presented today at 9 AM by Finance Minister K.N. Balagopal, outlining the government’s strategies to tackle economic challenges, boost investments, and ensure social welfare. The Budget arrives amid a financially challenging period for the state, as central grants have declined, and the GST compensation scheme has ended. Additionally, Kerala’s request for special financial assistance from the Union government to rehabilitate landslide survivors in Wayanad and mitigate increasing human-wildlife conflicts has not been addressed.
With elections on the horizon, one of the major areas of focus is expected to be social security pensions. The current pension rate stands at ₹1,600 per month, but the LDF government had promised to raise it to ₹2,500. It remains uncertain whether the Budget will announce an increase or provide updates on the assured pension system for government employees, which was introduced in the previous Budget.
To spur economic growth, Balagopal has emphasized the importance of attracting investments and accelerating industrial projects. The Budget may highlight progress on special development zones, industrial corridors, and technology parks. The Vizhinjam port project, a multi-crore initiative, remains a key infrastructure priority.
Despite improving tax revenues, Kerala continues to grapple with financial pressure due to drastic cuts in Plan schemes and the impact of GST compensation withdrawal. According to the NITI Aayog Fiscal Health Index 2025, Kerala is ranked among states with high debt, substantial interest payments, and weak revenue generation, emphasizing the need for better fiscal management.
Key Budget Session Events:
- February 7 – Budget presentation, Economic Review, and supplementary financial statement.
- February 10-12 – General discussion on the Budget.
- February 13 – Discussion on industrial development and elderly citizens’ commission bills.
The Budget session, which began on January 17, resumes today after a break since January 24. The state’s financial roadmap for 2025-26 will determine how Kerala balances economic growth and social commitments while managing its fiscal constraints.
