Kerala FM Warns: Union Budget Indicates Recession Amid Funding Cuts

Kerala Finance Minister K N Balagopal voiced concerns over India's economic trajectory, suggesting the Union Budget points to a looming recession. He cited insufficient revenue growth, decreased sector funding, and international tariff pressures as compounding issues, emphasizing potential impacts on both state and national economic stability.

Kerala Finance Minister K N Balagopal sounded alarms on Tuesday, warning that the recently presented Union Budget may signal an impending recession. Speaking to PTI Videos, Balagopal highlighted that the Central Government's revenue receipts grew by less than three percent this year, falling short of typical annual growth.

He criticized the reduction in budget allocations across sectors, noting substantial cuts in schemes like MGNREGA and funds for education and health. Furthermore, he pointed out that promised funds for projects like the Jal Jeevan Mission remain undisbursed, burdening the state with debt.

Balagopal also accused the Central Government of aligning policies with U.S. interests, leading to economic vulnerabilities. He called attention to issues including GST restructuring and potential repercussions of a free import agreement, which could adversely affect India's dairy sector.

(With inputs from agencies.)