In Kerala, the State Finance Minister K.N. Balagopal presented the 2025-26 budget, focusing on Metro rail projects, high-speed rail corridors, and the K-Homes project for tourism. Presenting the Budget the Minister said that Kerala has survived the most intense phase of financial crisis without any of its welfare schemes or development work being affected. Mr Balagopal said that Kerala’s economy is primed for a take-off due to the stringent fiscal consolidation measures. The State Budget proposed Rs. 750 crore project for the rehabilitation of Wayanad landslide disaster victims. As part of the budget proposals, Rs 600 crore in arrears for service pensioners will be disbursed in February. Two instalments of salary revision arrears will also be granted within this financial year and merged into the Provident Fund. The Land tax was increased 5by 0 per cent in the State Budget which is expected to bring an additional income of Rs 100 crore for the state.

Presenting the Budget, Mr Balagopal criticised the Central Govt for consistently reducing Kerala’s share in the divisible tax pool. Chief Minister Pinarayi Vijayan said that the state budget will give a boost to the construction of a new Kerala. Whereas the Congress-led opposition said that the Budget would push Kerala into misery.

Mr. Balagopal also tabled the Economic Review 2024 and the final supplementary financial statement for the 2024-25 fiscal. The general discussion on the Budget will take place on February 10, 11 and 12.