Thiruvananthapuram: Facing a severe financial crisis, the Left government in Kerala announced its decision to cut unnecessary expenditure and prioritise certain areas in the current financial year’s budget.In a statement, the Chief Minister’s Office (CMO) said that the state Cabinet has decided to make necessary adjustments to the budget allocation for the 2024-25 financial year due to economic constraints caused by central policies.
The Cabinet meeting, chaired by Chief Minister Pinarayi Vijayan, has constituted a ministerial sub-committee comprising ministers from key departments, including Finance, Revenue, Industry and Law, Water Resources, Power, Forests, Local Self-Government, and Excise, to make the necessary budget adjustments.
The statement mentioned that before the ministerial committee approves any projects, including those currently under consideration, their necessity will be examined by a committee consisting of the Chief Secretary, Finance Secretary, Planning Secretary, and the concerned department secretaries. This committee will review and make recommendations.
Although the statement did not specify the nature of the adjustments, official sources revealed that the measures aim to cut unnecessary expenditures and prioritise areas that directly impact the public.
This decision follows a poor performance in the Lok Sabha elections by the ruling CPM-LDF, prompting the constituents of the ruling front to carefully review the government’s performance. The LDF managed to win just one Lok Sabha seat out of 20 in Kerala, leading to thorough scrutiny of the government’s actions.
Meanwhile, the government has decided to review proposals for revising fees for income growth and non-tax revenue growth. The recommendations for this will be prepared by the secretaries of each department and issued by July 26, the statement said. A panel of officials will be formed to address complaints related to this matter. The rate increases implemented in the last six months will not be affected by the new rate hike. Students, Scheduled Castes, and Scheduled Tribes will be exempt from the rate hike, it added.
The Chief Secretary will be the committee’s secretary. The committee will submit its recommendations, which will be implemented with the approval of the Chief Minister, it added.