Thiruvananthapuram: Kerala Finance Minister K N Balagopal presented the state budget for 2025 on Friday, detailing key financial policies and allocations aimed at driving the state's development in the coming year. While Balagopal affirmed that Kerala has overcome its financial crisis through streamlining efforts, welfare pensions have not been increased. The budget focused on crucial projects, including a Rs 750 crore rehabilitation scheme for the victims of the Wayanad landslides.

Wayanad landslide victims to receive Rs 750 crore rehabilitation project

The tragic landslides in Mundakkai and Chooralmala villages in Wayanad, which claimed over 200 lives and devastated hundreds of properties, were at the forefront of the budget’s focus. The estimated damage from the disaster is pegged at Rs 1,202 crore, and the rehabilitation cost is expected to be Rs 2,221 crore, as assessed by experts. Despite the gravity of the disaster, the Union Budget has not allocated any assistance for Kerala’s relief efforts. Balagopal expressed hope that the Centre would extend the same support to Kerala as it did to other states.

Balagopal reiterated the Left government’s commitment to completing rehabilitation within the set timelines. He further emphasized that the financial crisis did not hinder the implementation of vital social welfare schemes or development initiatives.

Key allocations for welfare and development

A major allocation of Rs 3,820 crore has been earmarked for scholarships for students from minority communities and Scheduled Castes/Scheduled Tribes. With the Centre withdrawing scholarships for minority students from classes 1 to 8, Kerala’s government has introduced the 'Marg Deepam' project, with Rs 200 crore allocated for these students.

Additional allocations include Rs 10 crore for bio-ethanol research, Rs 100 crore for replacing outdated government vehicles, and Rs 50 crore for addressing wild animal attacks in the state.

Infrastructure and new projects announced

Balagopal also outlined several infrastructure initiatives, including the expected opening of the expanded National Highway by the end of 2025. The K-Homes project, which will enhance tourism infrastructure by utilising unoccupied homes near major tourist destinations like Fort Kochi, Kumarakom, and Kovalam, is set to be launched as a pilot. If successful, it will be expanded across the state.

The Thiruvananthapuram metro project is also set to commence this year.

Pension and salary revisions addressed

The Finance Minister assured that the final Rs 600 crore installment for service pension revisions would be paid this month, and that two pending installments of salary revision arrears and Dearness Allowance (DA) arrears would be settled within the financial year.

KIIFB’s role in funding large projects

KIIFB will allocate Rs 500 crore for major projects, and efforts will be made to incorporate a revenue-generating mechanism to manage the body’s considerable debt, which currently stands at over Rs 87,000 crore due to its borrowings for various development projects.

Opposition raises concerns over economic review omission

Before the budget presentation, Leader of Opposition V D Satheesan raised concerns over the omission of the economic review, which is typically placed before the Assembly ahead of the budget. Satheesan criticised the violation of an earlier ruling, urging that steps be taken to prevent such occurrences in the future. Speaker A N Shamseer acknowledged the issue and emphasized the importance of the economic review.

Budget discussions are scheduled for February 10 to 12, with voting on supplementary grant requests to take place on February 13.