Election budget on the way; Govt preparing plan to cut expenses

THIRUVANANTHAPURAM: One more budget is left to be presented before the assembly elections in 2026. Seeing the impending elections and the need to win favour among the populace, the government is preparing to reduce its expenses as much as possible and allocate more money for welfare measures.

The Finance Department has sent a circular to the departments to submit budget proposals for the next year in line with this plan. The main agenda is to reduce expenses. A clear report was requested to be submitted before September 25.

More welfare benefits will be included in the budget. A large part of the arrears of government employees' benefits will have to be paid. A salary reform commission will also be appointed soon to resolve the grievances of employees.

Since local elections and assembly elections are around the corner, huge expenditure is expected at the end of this financial year. It is in this context that the Finance Department proposed the norms.

There has been a considerable growth in the government's income compared to previous years. The current income is almost double what the coffers received during the time the second Pinarayi government took office. There has also been a significant reduction in borrowing. The trend of borrowing doubled every five years, but was halted this time. This is the first time in the history of the last thirty years that a government has completed its term without doubling its borrowing. The Centre's strict stance also contributed to this achievement.

1. Estimates should be prepared keeping in mind the general situation of the state. Unprofitable and wasteful schemes should not be proposed.

2. Maintenance expenses should be avoided. If there is an intention to continue any schemes, the departments should be informed in writing of the need to continue the scheme.

3. Government expenditure should not be increased on items other than salaries and pensions. Steps should be taken to restructure posts. This may affect new appointments.

4. While preparing the revised estimate, the project expenditure of this year should not be included. Estimates of non-project expenditure should be submitted before the 10th of the next month, and estimates of projects should be submitted before the 15th.