Kerala facing financial difficulties due to absence of GST compensation: Governor Rajendra Arlekar in policy address
Jan 17, 2025
Thiruvananthapuram (Kerala) [India], January 17 : The 13th session of the 15th Kerala Legislative Assembly session began on Friday with Governor Rajendra Arlekar's maiden policy address. The governor highlighted that the state government is facing financial difficulties due to the absence of GST compensation and reduced grants.
"Kerala's share in the central divisible pool has steadily declined from 3.875% during the 10th Finance Commission to 1.925% under the 15th Finance Commission. The cessation of GST compensation and revenue deficit grants coupled with restrictive conditions on Centrally Sponsored Schemes and new borrowing constraints have posed significant fiscal challenges for my state government," he said.
The Governor said that the government is committed to building 'Nava Keralam' with high-quality infrastructure, a knowledge-based economy, quality education and healthcare.
He also highlighted the series of devastating disasters faced by Kerala in the last decade.
"Despite the challenges posed by unprecedented floods of 2018 and 2019, Cyclone Ockhi and the recent Meppadi landslide, Kerala's disaster management model, rooted in community resilience, technological integration and proactive governance, has garnered global recognition as a beacon of effective crisis response. My government is committed to rehabilitating all those affected by the Meppadi landslide by ensuring the completion of the township within one year", he said.
He said that the state government has a firm commitment to the constitutional values of secularism, democracy, federalism, social justice and respecting diversity while preserving unity. "My Government feels that attempts to homogenise differences in a country which has accommodated diversity with respect will run counter to Constitutional values and lofty ideals of the nationalist movement", he added.
The Assembly will meet for 27 days of sittings in its 13th session. The discussion on the thanksgiving motion on the Governor's address will be held from January 20 to January 22. The State Budget will be presented on February 7, followed by a general discussion on it from February 11 to February 13. The final batch of Supplementary Demands for Grants for the 2024-25 fiscal will be considered on February 13.
The Assembly will take a break from February 14 to March 2. During this period, Subject Committees will scrutinise the demands for grants.
Once the session resumes on March 4, the Assembly will take up the demands for grants for the 2025-26 fiscal.
Before the session winds up on March 28, the House will pass two Appropriation Bills concerning the final supplementary demands for grants for the 2024-25 fiscal and the 2025-26 State Budget.