THIRUVANANTHAPURAM: Kerala cannot reduce social sector spending at the risk of the achievements it made in fields like education and health, Finance Minister K N Balagopal said on Thursday. He was responding to the state’s poor ranking in the ‘Fiscal Health Index 2025’ released by the NITI Aayog recently.
“The report found fault with the state’s relatively higher spending in health and education. It says spending money on people’s health is unhealthy. However, Kerala cannot stop it,” he told reporters.
Unlike many other states, Kerala gives social security pensions. Also, the state did not reduce appointments to government posts as against the national trend, he said.
Balagopal said he agreed to the recommendation in the report to increase revenue.
“In fact, the same report and the one by the Comptroller and Auditor General commended the state for increasing tax revenue. We are among the toppers in that parameter,” he said, adding that the state was ready for a certain extent of rationalising expenditure as well.
Citing the NITI Aayog report, Balagopal said the state’s debt GDP ratio improved from 38% to 34%.
“However, its fiscal issue will not be solved unless we get our due share in tax devolution by the Union government,” he said.
Balagopal said the cabinet has approved the Annual Plan for the State Budget 2025.
“The state wishes for a fair deal in the upcoming Union Budget. The demands made at the pre-budget consultation include a special economic package worth Rs 24,000 crore, Wayanad rehabilitation package worth Rs 2,000 crore and the Vizhinjam special pack age worth Rs 5,000 crore,” he said.