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Union Budget 2025

Additional 211 crore rupees allocated for local self-government bodies

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Anusha Paul

Published on Oct 31, 2025, 06:44 PM | 2 min read

Thiruvananthapuram: Finance Minister KN Balagopal announced that an additional Rs 211 crore has been allocated for the three-tier panchayats and municipalities in the state. An installment of the General Purpose Fund, which can be used for public needs, has also been allocated. Gram panchayats will get Rs 150 crore, block panchayats Rs 10 crore, district panchayats Rs 7 crore, municipalities Rs 26 crore and corporations Rs 18 crore.


The Finance Minister said that despite the financial crisis caused by the central government policies, the government is taking a committed stance to fully provide the amount allocated for local self-government bodies. Rs 10,433 crore has already been allocated for local self-government bodies this financial year.


Union Finance Minister Nirmala Sitharman presented 2025-26 budget on Saturday, February 1,, 2025, overlooking several critical demands from the state. Kerala had requested a 24,000 crore economic package to address various pressing issues, including the aftermath of a massive landslide in Wayand the previous year. The state had sought 2,000 crore for rehabilitation efforts for the survivors , but this request was not included in the budget. Additionally, long pending demands for the establishment of an All India Medical Sciences (AIIMS) in the state were once again neglected. Kerala is also grappling with escalating wildlife conflict and emerging climate-related challenges, yet these crucial concerns were not addressed in the proposed budget.



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