THIRUVANANTHAPURAM: The state government is contemplating an early presentation of the annual budget for 2024-25. According to highly placed sources, efforts are currently underway to unveil a comprehensive budget in the assembly by January 2024, with the objective of securing its passage before the general elections.
Preparations have already begun at the Finance Department and the Kerala State Planning Board, with ongoing consultations with various government departments. This timeline allows for subsequent processes, including subject committee meetings, discussions, and the passing of demand for grants, to be completed without hindrance.
However, if the budget were to be presented in February or March, it would not be feasible to conclude the entire process before the general election. In such a scenario, resorting to a vote-on-account would be the available option. Opting to present the budget in January 2024 will enable the government to initiate spending at the commencement of the new financial year.
Given the LDF’s desire to improve their prospects in the Lok Sabha elections, analysts expect a feel-good budget in the New Year. The LDF’s previous loss of 19 out of 20 seats in the last general elections underscores the importance of a potentially impactful budget in enhancing their electoral position.
Last year’s budget saw a series of tax hikes, leading to discontent among various segments of society. Notably, property tax, stamp duty, and taxes on vehicles were increased, with the social security cess of Rs 2 per litre of petrol and diesel drawing the most criticism.
The cess aimed to establish a Social Security Seed Fund for the disbursement of social security pensions and was projected to generate an additional annual revenue of Rs 750 crore. The first full budget of the second Pinarayi Vijayan Government was presented on March 11, 2022, followed by the subsequent budget on February 3 this year.
Last year’s shock