THIRUVANANTHAPURAM: The state government will not cut expenses like scholarships, stipends, salary and pension as part of financial restrictions, Finance Minister K N Balagopal said in his reply to the discussion on the state budget 2025-26 in the assembly on Wednesday.
The minister was responding to the Opposition’s allegation that the government stopped scholarships to minority communities. The state government allocated Rs 20 crore to continue the scholarship programme for school students from minority communities which was abruptly stopped by the Centre. The state restarted the Maulana Azad scholarship stopped by the union government. As much as Rs 6 crore is spent on this.
Balagopal refuted Opposition’s allegation on reduced Plan expenditure in the backdrop of the financial crisis. The minister said the progress of the State Plan and LSG Plan in the current financial year was 63.33% and 68.33% so far. The figures will be much higher by the end of the financial year.
Though the government is committed to increasing social security pension, the current priority is to disburse the arrears. Of the total five pending instalments, two were paid recently and three would be paid next year. Government also plans to increase the procurement price of paddy and rubber.
Budget size to cross two lakh crore
Kerala will achieve a milestone in the new financial year with the annual Budget size crossing Rs 2 lakh crore, Balagopal said. The annual expenditure of the government rose from Rs 1,17,000 crore to Rs 1,64,000 crore under the Pinarayi government. The expenditure will cross Rs 1.79 lakh crore in the new financial year.
The minister made additional announcements worth Rs 36.5 crore on the day. The total volume of additional announcements was Rs 1,820.50 crore. A major announcement was Rs 3 crore allocation for launching a faceless adjudication system in GST. A total of Rs 2 crore will be sanctioned for the revenue department to launch the Digital Property Card programme.
Opposition charge
Leader of Opposition V D Satheesan criticised the government for the increase in revenue deficit and fiscal deficit. The GSDP- revenue deficit ratio increased from 1.58% in 2023-24 to 2.29% in 2024-25. Revenue deficit rose from Rs 18,140 crore to Rs 29,195 crore. “The effective increase is Rs 11,000 crore. Is there anything to rejoice?” he asked.