Kerala's Bold Budget: Infrastructure Over Populism

Kerala's final budget under the second Pinarayi Vijayan government focuses on infrastructure rather than populism. Aimed at boosting revenue, the budget includes tax increases despite a Rs 27,000 crore deficit. Notable measures include transforming the Kerala Infrastructure Investment Fund Board (KIIFB) and advancing crucial port and metro projects.

The final budget of Kerala's second Pinarayi Vijayan government, presented by Finance Minister K N Balagopal, chooses infrastructure development over populist schemes. The 2025-26 budget, despite a significant deficit, highlights revenue-boosting efforts through taxes on land, electric vehicles, and court fees.

To tackle the state's substantial debt, Balagopal announced the transformation of the Kerala Infrastructure Investment Fund Board into a revenue-generating entity. The budget further outlines ambitious infrastructure plans, including metro developments and advancing the Vizhinjam port project well ahead of schedule.

Revenues are projected to increase significantly, with efforts to tap into unused housing resources and strengthen key transport corridors through the Vizhinjam-Kollam-Punalur Growth Triangle. However, the government faces financial pressures, exacerbated by limited support from the Union government.