In a scathing critique of the Union government’s alleged “hostile approach” towards Kerala, Finance Minister KN Balagopal presented the 2024-25 budget on Monday, expressing disappointment over the state’s perceived neglect and vowing to explore a “plan B” if the situation persists. The finance minister pledged investments worth ₹3 lakh crore over the next three years, emphasizing the state’s commitment to development and welfare activities amid a financial crisis.
Balagopal, in his fourth budget of the second Pinarayi Vijayan government, accused the Union government of reaching the “zenith of neglect” during the current fiscal year. He expressed hope that ongoing legal battles and political agitation would improve the situation, but warned that the state must be prepared for an alternative plan if the neglect continues.
“The development and welfare activities should continue at any cost, and they will,” asserted Balagopal during his budget speech. He outlined key thrust areas for the investments, focusing on tourism projects, allied development around Vizhinjam and Cochin ports, industrial corridors in Kochi, Palakkad, and Kannur, and IT-enabled services.
Balagopal highlighted the upcoming operational status of the Vizhinjam International Seaport by May and outlined ongoing activities related to port construction, allied infrastructure development, and the creation of special development zones. International investors’ meets and a maritime summit are also planned to attract investments related to the port.
The finance minister confirmed the state government’s commitment to metro projects in Thiruvananthapuram and Kozhikode, along with the expansion of the Kochi Metro. He indicated that discussions with the central government regarding the K-rail semi-high-speed project are ongoing.
As part of the budget announcements, Balagopal revealed an increase in the minimum support price of rubber, allocation of ₹10 crore for the Keraleeyam cultural program, and an increase in electricity duty for consumers generating and using energy for their consumption.
Additionally, the government proposed tax reductions on All India Tourist Permit buses to discourage operators from registering vehicles in other states, estimating an additional resource mobilization of ₹1067 crore in the next financial year.
Balagopal assured “special measures” for the timely payment of pensions in the coming financial year, aligning with the government’s promise to increase monthly social welfare pensions from ₹1600 to ₹2500, as stated in their 2021 manifesto.
However, Opposition leader VD Satheesan criticized the budget, stating that the announcements “lacked reality” and accused the government of using the budget as a platform for “political criticism” as elections approach. Satheesan particularly expressed disappointment in the budget’s treatment of the agriculture sector.
Sources By Agencies
