Kerala Revenues up 5,629 Crore in Two Months; Balagopal Warns UDF Against Budget Cuts Citing False Fiscal Crisis

Thiruvananthapuram: Former Finance Minister K N Balgopal has said Kerala's economy continues to be on an improving trajectory, with the revenue growth achieved through the LDF government's fiscal management now becoming evident. Reports in several outlets including Malayala Manorama have noted that state revenues have risen by ₹5,629 crore in just the first two months of the current financial year. Balgopal said this growth trajectory would yield at least ₹10,000 crore in additional revenue in the coming year, with a matching share expected from the Centre as well.

Speaking at a press conference, Balgopal said the UDF had long propagated the narrative that Kerala's economy was in ruins — but the figures tell a different story. The LDF left office having laid all the groundwork for economic improvement, and the UDF now finds itself the beneficiary of that foundation. Against this backdrop, he demanded that the UDF government must not use the pretext of a fiscal crisis that does not exist to cut allocations for welfare schemes in the upcoming revised budget — particularly urging that provisions for vulnerable sections be enhanced rather than reduced.

Balgopal also flagged the non-release of the RD grant, which has not been provided as part of this Finance Commission cycle, and demanded that the state government urgently take up the matter with the Centre to secure its release.