Kerala Assembly Budget Address Highlights State's Financial Challenges

The Kerala assembly's budget session began with Governor Rajendra Arlekar outlining the state's financial challenges. Due to borrowing limits and GST adjustments, Kerala expects a Rs 17,000 crore shortfall in 2025-26. Despite federal constraints, the state achieved 12% growth, doubling output over a decade.

The budget session of the Kerala assembly kicked off on Tuesday with Governor Rajendra Vishwanath Arlekar reading the Left government's policy. The address highlighted the state's financial 'pressures' stemming from economic 'curtailments' linked to borrowing limits and adjustments in the Integrated Goods and Services Tax (GST).

According to Arlekar, these restrictions are expected to cause a significant Rs 17,000 crore shortfall by 2025-26. An additional 'loss' of Rs 4,250 crore is attributed to deviations in the Gross State Domestic Product methodology from the Finance Commission's recommendations. The state has conveyed these concerns to the central government.

Despite these challenges, Kerala achieved a 12% growth rate and doubled its output in the last decade. The Governor's address also detailed state accomplishments in health, education, and infrastructure, alongside planned future initiatives. The assembly's 16th session will run for 32 days, with the budget presentation scheduled for January 29.

(With inputs from agencies.)