KN Balagopal to present final budget of second Pinarayi Vijayan government today

Thiruvananthapuram: Kerala Finance Minister K.N. Balagopal will present the second Pinarayi Vijayan government’s final budget in the state Assembly at 9 am on Thursday. The budget comes with Assembly elections approaching and is expected to carry key announcements.

Addressing the media ahead of the state budget on Wednesday, Balagopal said that despite financial constraints imposed by the Centre, Kerala has moved forward by increasing its own revenue. He added that the budget would reflect an approach aimed at strengthening the state’s economy.

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He noted that Kerala’s revenue structure does not depend solely on income from lottery, liquor and motor vehicle tax.

“Except for a small cess, liquor prices have not been increased for five years. Revenue from the lottery is less than three per cent,” he said, adding that the benefits of the Centre’s reduction in motor vehicle tax had not reached the people.

Meanwhile, Balagopal stated the state has succeeded in increasing its own revenue by over ₹1 lakh crore. Despite concerns that the state treasury might face closure due to financial stress, such a situation did not arise. He said the government is focusing on advancing in key sectors, including infrastructure development, employment and scientific research.

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He described the Vizhinjam project as an example of the government’s determination. Kerala has created an image as a state where people can find employment, he said, adding that the government will focus on effective utilisation of remittances and welfare schemes in line with the rising elderly population.

Economic Review 2025

In a separate development, Kerala's economy posted a strong growth in 2024-25 with an increase in the Gross State Domestic Product (GSDP) in real terms to Rs 6,85,28,316 lakh in 2024-25 from Rs 6,45,31,002 lakh in 2023-24, registering a growth of 6.19 per cent in 2024-25.

The Economic Review 2025 by the Kerala State Planning Board, released on Wednesday ahead of the State budget on January 29

The Gross State Value Added (GSVA) at 2011-12 prices increased to 6.59 per cent in 2024-25, up from 6.34 per cent in 2023-24.

The GSDP at current prices grew by 9.97 per cent in 2024-25, as against 9.3 per cent in 2023-24.

Similarly, GSVA at the current price grew at 10.08 per cent in 2024-25 as against 9.19 per cent in 2023-24.

Kerala is among the top ten States in India with a high per capita GSDP. The per capita GSDP at constant prices increased to Rs. 1,90,149 in 2024-25 (Q) from Rs. 1,79,953 in 2023-24, registering a growth of 5.67 per cent compared to last year.

The average income per person in Kerala is higher than the national average.