THIRUVANANTHAPURAM: Climate resilience considering the impact of climate change on agriculture and disaster events will be given focus in the state budget for the 2025-26 fiscal, which would be presented in the assembly in the second week of February, most probably on February 7.
A source privy to the budget preparation said there will not be a cut in the annual plan size despite the plan expenditure for the current fiscal falling short of target.
As per the current plan, the assembly will meet on January 17 and adjourn on January 23 after discussion on the governor’s policy address. The House will again meet on February 7 for budget presentation and adjourned on February 13 after general discussions on the budget.
Demand-wise discussions and passing of the budget will be taken up when the House meets again, from March 3 to 31. The budget is expected to lay focus on climate resilience. Projects to leverage the benefit of the Vizhinjam International Seaport are also likely to be announced. The proposed economic triangle linking Vizhinjam, Kollam and Punalur is expected to get a much-needed budgetary support.
In November 2024, the Kerala Infrastructure Investment Fund Board (KIIFB) had made an initial allocation of Rs 1,000 crore for the project covering an area of 1,456 sq km. An allocation to provide rail connectivity to the port is also expected.
The aggregate plan outlay for the 2024-25 fiscal is Rs 38,886.91 crore. Of this, the state plan outlay is Rs 21,838 crore, central share of CSS is Rs 8,516.91 crore and the LSGI plan outlay is Rs 8,532 crore. The financial progress or expenditure from the aggregate plan is 40.98% so far, about 15% lower than the achievement in the corresponding period last year. The progress of the state plan outlay, CSS and LSGI plan are 39.18%, 41.13% and 45.44%, respectively.
As per the current estimate, the aggregate plan progress by March-end would be lower than the 75.2% achieved in 2023-24 financial year, the source said.
This is attributed to the financial crisis brought on by the cut in the state’s borrowing limit, stoppage of GST compensation and revenue deficit grant from the Centre and a lower share from central taxes as fixed by the 15th Finance Commission.
As the budget preparation is on, the government is in no mood to cut the plan expenditure fearing a slowdown in development and social welfare activities. The state’s development expenditure, as per the 2024-25 Budget Estimate, is Rs 86,588.1 crore, an 18.4% increase from the previous year.