Kerala's Final Push: Vijayan's Bold Budget Moves Focus on Revenue & Infrastructure Boost

The Kerala government, led by Pinarayi Vijayan, presented its final budget for 2025-26. Key proposals include road tax hikes on electric vehicles and older cars, and infrastructure development. Aimed at overcoming financial constraints, the budget anticipates additional revenue, primarily through tax reforms.

In a strategic final budget for the Pinarayi Vijayan government in Kerala, Finance Minister K N Balagopal unveiled measures targeting fiscal stability and infrastructure growth. Despite skipping populism, the plan includes raising road tax on electric vehicles to bolster state revenue.

Facing a significant revenue shortfall, the 2025-26 budget proposes increased taxes on land, prolonged vehicle life, and court fees. While Kerala has reportedly increased its tax revenue by 70%, these measures are designed to navigate ongoing fiscal challenges.

Highlighting major development projects, including the Vizhinjam port’s expansion and Kochi Metro's progression, Balagopal affirmed the government's commitment to infrastructure, even amidst central fiscal constraints, emphasizing Kerala's strategic growth vision.