Kalanjoor Narayana Panicker Balagopal, Minister for Finance, Government of Kerala, presented his 5th and last full budget of the Pinarayi Vijayan government’s second term in the Kerala Legislative Assembly.
- The budget includes strategic tax revisions, infrastructure development, social security measures, education, and technological advancements.
- The budget for 2025-26 showcases revenue receipts of Rs 1,52,352 crore and revenue expenditure of Rs 1,79,476 crore.
Points to Note:
i.The total revenue receipts are expected to rise by Rs 19,421.87 crore over the revised estimates for 2024-25, the State’s Own-Tax Revenue (SOTR) is expected to go up by Rs 9888 crore and the non-tax revenue, by Rs 1,240 crore.
ii.The fiscal deficit as percentage of Gross State Domestic Product (GSDP) has been pegged at 3.16% in FY 2025-26, down from 3.51% the previous financial year. The deficit has grown from 2.5% in FY 2022-23 to 2.99% in FY 2023-24.
iii.The Annual expenditure of the state went up by Rs 50,000 crore
Some Key points from the Budget Presentation:
1.Disaster Relief and Rehabilitation:
i.A major focus on disaster response, with a Rs 750 crore project for the 1st phase of rehabilitating victims of the 2024 Wayanad landslides, which reportedly caused over 200 deaths and significant economic damage.
- The total loss was Rs 1202 crore, with a rehabilitation need of Rs 2201 crore.
ii.Rs 51 crore was allocated for the implementation of various development programs for the rehabilitation and financial upliftment of Scheduled Caste (SC) people belonging to economically and socially Disadvantaged Communities (DACs).
2.Social welfare initiatives:
i.An amount of Rs. 20 crores have been allocated for “Margadeepam“, a scheme intended to provide scholarships to students belonging to minority communities and Scheduled Castes (SCs)/Scheduled Tribes (STs), replacing withdrawn central government scholarships.
ii.The final installment of the Service Pension (SP) revision arrears, amounting to Rs.600 crores will be disbursed in February 2025.
iii.Social Security Pensions (SSPs), currently at Rs 1600 per month to around 60 lakh elderly beneficiaries, may see a minor hike.
- The largest SSP in India is in Kerala, spending over Rs 11,000 crore in a year to provide a pension of Rs 1600 per month.
iii.Rs 50 crores were allotted for the ‘Aswasakiranam’ scheme, which provides monthly assistance of Rs 600 to the family member who looks after the bed-ridden patients at home.
iv.Rs 21 crores were allocated for Stroke Care Units (SCU) in Ernakulam, Thrissur, etc.
- By this, Kerala will become the 1st Indian State to achieve the status of having SCU facilities in all district-level hospitals.
3.Transport and Infrastructure:
i.The outlay of Roads and Bridges (R&B) is Rs 1157.43 crores; Rs 198.84 crores were provided for Road Transport; and Rs 133.02 crores were provided for the Inland Water Transport (IWT) sector.
ii.Rs 100 crore was earmarked for the Kerala State Transport Project (KSTP) Phase II for the activities of road safety and improvement of 363 kilometers (km) of roads.
iii.Rs 107 crore was provided for the fleet modernisation of the Kerala State Road Transport Corporation (KSRTC) by purchasing modern diesel Bharat Stage Emission Standards 6 (BS-VI) buses in place of old buses.
iv.Rs 5 crores were allotted for the K Homes project, a new project to develop basic tourism infrastructure by using empty and unoccupied homes across KL, thereby maximising their utility.
Other Few Allocations:
i.An amount of Rs 727.40 crore was provided for the plan schemes in the agriculture sector in the financial year 2025-26.
ii.Rs 2391.13 crore was allocated for the Education Sector in the Financial Year 2025-26, and Rs 1083.82 crore was set apart for the School Education Sector.
- Rs 84.28 crore was provided for the basic infrastructural development of Government schools.
iv.The government has decided to increase the road tax on old two-wheelers, private three-wheelers, and private motor cars beyond 15 years by 50%, expected to generate Rs 55 crore.
v.The wages of daily wage and contract employees will be hiked by 5%.
Recent related News:
On February 1, 2025, Union Minister Nirmala Sitharaman, Ministry of Finance (MoF) presented her 8th Union Budget 2025-26, highlighting a focus on nuclear energy. The key focus is on developing indigenous nuclear technology, encouraging private sector participation, and making key investments in nuclear infrastructure.
About Kerala:
Chief Minister (CM)- Pinarayi Vijayan
Governor– Rajendra Vishwanath Arlekar
Wildlife Sanctuaries– Karimpuzha Wildlife Sanctuary and Kurinjimala Sanctuary
Sea Port– Kochi Port or Cochin Port
