In his inaugural speech for the 13th session of the Kerala Legislative Assembly, Governor Rajendra Vishwanath Arlekar shed light on the state’s growing financial difficulties, attributing them to a significant decline in Union fiscal transfers.
Despite ongoing efforts by the Kerala government to boost revenue and control expenditures, the state continues to experience liquidity stress, with key contributors being the reduction of revenue deficit grants and the cessation of GST compensation.
To address these challenges, the Kerala government has presented a detailed memorandum to the 16th Finance Commission, outlining the financial hurdles and the steps being taken to mitigate them.
Beyond financial issues, Governor Arlekar also highlighted the state’s commitment to rehabilitating those affected by the devastating landslides in Meppadi panchayat, Wayanad, in July of the previous year. The government is determined to build a township for the displaced individuals within a year, reinforcing its focus on disaster resilience.
The 13th session of the Kerala Assembly, which runs from January 17 to March 28, 2025, will see Finance Minister K N Balagopal present the state budget for the 2025-2026 fiscal year on February 7. A motion of thanks for the Governor’s address will take place from January 20 to 22, 2025, marking the beginning of an important legislative session for the state.
