Kerala’s Finance Minister, K. N. Balagopal, has unveiled the state’s budget for 2025-26 today, introducing a series of ambitious projects and allocations aimed at bolstering infrastructure and addressing pressing concerns.
Metro rail projects on the fast track: The budget places a significant emphasis on urban transportation, with plans to extend the existing Kochi Metro line and initiate metro projects in Kozhikode and Thiruvananthapuram. These initiatives aim to enhance urban mobility and reduce traffic congestion in these bustling cities.
Hefty allocation for Wayanad rehabilitation: In response to the recent disasters in Wayanad, the government has earmarked ₹750 crore for the rehabilitation of affected residents. This fund is dedicated to rebuilding infrastructure and providing support to those impacted by landslides and floods in the region.
K-Home project: Turning vacant homes into tourist havens: An innovative initiative, dubbed the ‘K-Home Project,’ seeks to repurpose vacant homes across Kerala into tourist accommodations. This move aims to boost tourism, provide unique lodging experiences for visitors, and generate income for homeowners with unoccupied properties. Interestingly, this can be compared to the Italian initiative of selling inhabited homes for as low as $1 and re-populise villages.
Infrastructure and urban development: Beyond transportation, the budget outlines plans for constructing 150 new bridges and developing ports and highways. Additionally, Metropolitan Plan Committees are set to be established for Kochi, Kozhikode, and Thiruvananthapuram to accelerate urban development.
Financial outlook and revenue generation: Despite challenges, Kerala has reported a 70% increase in its own tax revenue over the past four years. However, concerns have been raised regarding the reduction of the state’s share in central taxes, which has decreased from 3.88% during the 10th Finance Commission period to 1.92% in the 15th Finance Commission period.
This budget reflects Kerala’s commitment to infrastructure development, disaster rehabilitation, and innovative solutions to boost tourism and the economy.
