Kerala Governor Highlights ‘Financial Stress’ In Policy Address Blames ‘Decline In Union Fiscal Transfers’

The governor said the government had highlighted all the major financial problems faced by it in a detailed memo submitted to the 16th Finance Commission.

Thiruvananthapuram:Kerala Governor Rajendra Vishwanath Arlekar on Friday read out the state government's policy paper on the first day of the budget session of the assembly. The document claims that the state was under “financial stress” following a “decline” in the share of union fiscal transfers.

The state “has been facing stress on government finances” even as the administration was taking “earnest measures” for the mobilisation of revenue and rationalising of expenses, Arlekar said in his policy address, which marked the start of the 13th session of the 15th Kerala Legislative Assembly.

While reading out the policy address prepared by the state government, he said the reason for this situation was the “tapering of revenue deficit grants and cessation of GST compensation.”

The governor said the state government had highlighted all the major financial problems faced by it in a detailed memo submitted to the 16th Finance Commission.

“The government is committed to taking initiatives to build a disaster-resilient Kerala,” he said, citing the instances of the devastating landslides that hit Wayanad's Meppadi panchayat in July last year.

Arlekar also spoke about the achievements of the state government in various sectors like health, education, agriculture, fisheries, and infrastructure.

The 13th session of the Kerala legislature will be in session for 27 days between January 17 and March 28, and important business is scheduled to take place during this time.

The motion of thanks to the governor's speech will be discussed from January 20 to 22. On February 7, Kerala Finance Minister K N Balagopal will present the budget for the fiscal year 2025–2026.

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