The Kerala state budget provided significant relief for government employees by allocating Rs 1,900 crore to clear two pending installments of salary revision arrears within this financial year. Additionally, the lock-in period for two DA arrear installments will be removed, and Rs 600 crore for service pension revision arrears will be disbursed in February. While presenting the budget on February 7, Finance Minister KN Balagopal attributed the financial strain and outstanding dues to reductions in the state’s tax share and borrowing limits imposed by the central government. However, he expressed gratitude for the employees’ patience and assured that their rights, along with those of pensioners, would be protected.
Balagopal began his budget speech by highlighting Kerala’s ability to navigate a challenging financial phase. He stated that instead of concealing fiscal difficulties, the government had maintained transparency in addressing them. Despite financial constraints, he emphasized that ongoing development activities remained unaffected. He reaffirmed the government’s commitment to sustaining welfare programs and infrastructure projects without disruption.
Looking ahead, the Finance Minister projected a positive economic trajectory for Kerala, emphasizing that the state’s resilience has positioned it for substantial growth. He stressed that the government would continue prioritizing financial stability while ensuring the well-being of its employees and pensioners. Balagopal expressed confidence in Kerala’s ability to overcome fiscal challenges and move toward long-term economic progress.