What are the Key Highlights of Kerala Budget 2025-26?
The Kerala Finance Minister KN Balagopal recently presented the state’s 2025-26 Budget, outlining the government’s plans for the next fiscal year. The Budget aims to transform Kerala into a health hub, rebuild landslide-hit Wayanad, and increase revenue through tax hikes. In this blog post, we will delve into the key highlights of the Kerala Budget 2025-26 and what they mean for the state’s economy and citizens.
Making Kerala a Health Hub
One of the most significant announcements in the Budget is the allocation of ₹50 crore to make Kerala a health hub. This initiative aims to establish the state as a center for medical tourism, attracting patients from across the country and abroad. The government plans to invest in modern healthcare infrastructure, including hospitals, diagnostic centers, and medical research facilities. This move is expected to create new job opportunities and generate revenue for the state.
The Budget also proposes to establish a Kerala Institute of Medical Sciences (KIMS) in Thiruvananthapuram, which will provide world-class medical care to patients. Additionally, the government plans to set up a network of primary healthcare centers across the state, ensuring that citizens have access to quality medical care closer to their homes.
Rebuilding Wayanad
The Budget allocates ₹750 crore for rebuilding landslide-hit Wayanad, a region that was severely affected by heavy rains and landslides in recent years. The funds will be used to rebuild damaged infrastructure, including roads, bridges, and buildings. The government also plans to implement sustainable development projects in the region, such as reforestation and soil conservation.
The rebuilding of Wayanad is not just a humanitarian effort but also a strategic move to support the state’s economy. The region is known for its natural beauty and rich biodiversity, making it an attractive destination for tourists. By investing in the region’s infrastructure and development, the government aims to boost tourism and create new job opportunities.
Tax Hikes
To increase revenue for the state, the government has increased the land tax by 50%. This move is expected to generate additional revenue for the government, which can be used to fund development projects and improve public services.
The Budget also proposes to hike taxes on electric and private vehicles older than 15 years. This move aims to encourage the use of environmentally friendly vehicles and reduce air pollution. The government plans to use the additional revenue generated from these tax hikes to improve public transportation and promote sustainable mobility.
Other Key Highlights
Apart from the major announcements, the Budget also includes several other key highlights, including:
- An allocation of ₹500 crore for the development of the state’s IT sector, including the establishment of a new IT park in Thiruvananthapuram.
- A proposal to increase the minimum wage for unorganized sector workers to ₹15,000 per month.
- An allocation of ₹200 crore for the development of the state’s education sector, including the establishment of new colleges and universities.
- A plan to implement a comprehensive urban renewal program, including the redevelopment of old towns and cities.
Conclusion
The Kerala Budget 2025-26 is a comprehensive document that outlines the government’s plans for the next fiscal year. The Budget aims to transform Kerala into a health hub, rebuild landslide-hit Wayanad, and increase revenue through tax hikes. While there are some challenges ahead, the Budget provides a promising start for the state’s economy and citizens.
As the Budget is implemented, it will be important to monitor its impact on the state’s economy and citizens. The government will need to ensure that the additional revenue generated from tax hikes is used effectively to fund development projects and improve public services. By doing so, the government can create a brighter future for Kerala and its citizens.
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