Kerala Government to Trim Spending Amid Financial Crunch

The Kerala government has decided to cut unnecessary expenditures and prioritize key areas in its 2024-25 budget. Facing economic challenges due to central policies, the Cabinet, led by Chief Minister Pinarayi Vijayan, will make budget adjustments. A ministerial sub-committee and various officials will review and recommend necessary changes.

Faced with a significant financial crisis, Kerala's Left government announced on Thursday its decision to reduce unnecessary spending and prioritize specific areas in the current fiscal year's budget.

According to the Chief Minister's Office, the state Cabinet has resolved to make essential adjustments to the 2024-25 budget allocation due to economic constraints imposed by central policies.

The Cabinet meeting, led by Chief Minister Pinarayi Vijayan, formed a ministerial sub-committee comprising ministers from pivotal departments such as Finance, Revenue, Industry and Law, Water Resources, Power, Forests, and Local Self-Government and Excise to recommend necessary budget adjustments.

All proposed projects, including ongoing ones, will undergo a review by a committee of secretaries to assess their necessity before approval. This committee, consisting of the Chief Secretary, Finance Secretary, Planning Secretary, and respective department secretaries, will then make recommendations.

Although no specific adjustments were disclosed, inside sources indicated that the measures aim to eliminate unnecessary expenditures and focus on areas that directly affect the public.

The decision follows the ruling CPI(M)-LDF's poor performance in the recent Lok Sabha elections, which spurred a detailed review of the government's performance. The LDF won just one out of 20 Lok Sabha seats in Kerala, prompting an examination of the administration's actions.

The government also noted plans to review proposals for adjusting income and non-tax revenue growth, with departmental secretaries preparing related recommendations by July 26, 2024.

A panel will be established to handle complaints about these changes, ensuring that fee increases from the past six months remain unaffected. Exemptions will apply to students and Scheduled Castes and Scheduled Tribes.

The Cabinet emphasized the need for effective coordination among departments for developmental projects, forming another ministerial subcommittee for this purpose. The concerned department's minister will be invited as a special invitee, while the Chief Secretary will serve as the committee's secretary.

Recommendations from the committee, once approved by the Chief Minister, will be implemented accordingly.