THIRUVANANTHAPURAM: The plan outlay in the state budget for financial year 2025-26 is set to be 7 to 10% higher than the current fiscal as the government has decided not to compromise on developmental projects despite financial stress, according to sources.
The aggregate plan outlay for the current fiscal is Rs 38,886.91 crore. Of this, the state plan outlay is Rs 21,838 crore, Union government’s share of centrally sponsored schemes (CSS) Rs 8,516.91 crore and the plan outlay for local self-government institutions (LSGIs) Rs 8,532 crore.
The shortage of funds has however affected the actual expenditure from the current fiscal’s outlay. So far, expenditure from the aggregate plan outlay has achieved only 43.53% of the target. The progress of the state plan outlay is 42.73%, central share of CSS 43.67% and the LSGI plan outlay 45.44%. As per the current estimate, the aggregate plan progress by March-end will be lower than the 75.2% achieved in 2023-24.
Speculation is rife that the budget will have popular announcements in the wake of the forthcoming local body elections. Also expected is budgetary support to projects linked to the Vizhinjam port. Priority will be for the proposed economic triangle linking Vizhinjam, Kollam and Punalur, and the rail link to the port. The rehabilitation of the landslide victims in Meppady, Wayanad, is likely to get a mention in the new budget.
Financial support to Vizhinjam port and Wayanad rehabilitation were among the major demands in the wish list the state submitted to the Centre ahead of the Union budget.
The state had sought Rs 5,000 crore for Vizhinjam port along with a request to avoid the repayment clause for the Rs 817.80 crore viability gap funding, while Rs 2,000 crore was requested for Wayanad rehabilitation. But none of these demands were considered by the Centre.
The Centre’s rejection of another request, that of a special economic package worth Rs 24,000, has forced the government to explore more avenues for revenue generation.
The package was sought to compensate for the revenue losses due to the changed policies of the Centre. The state budget is expected to announce a revision of some service charges under the non-tax revenue head.
All eyes on Wayanad
Speculation is rife that the budget will have popular announcements in the wake of the forthcoming LSG polls
Budgetary support expected for projects linked to the Vizhinjam port. Priority will also be given for the proposed economic triangle linking Vizhinjam, Kollam and Punalur, and the rail link to the port
The rehabilitation of the landslide victims in Meppady, Wayanad, is likely to get a mention in the new budget