THIRUVANANTHAPURAM: With the decline of Covid, Finance Minister K N Balagopal will present the first full budget of the second Pinarayi government in the Assembly at 9 am on Friday.

Measures may be taken in the budget to increase tax and non-tax revenue. The finance minister has indicated that restrictions will be tightened to reduce expenditure. Taxes may be increased for liquor and vehicles, which generate most of tax revenue. Allocations for welfare schemes may also decline due to financial crisis. Raising fees for government services, land taxes and the fair value of land are also under consideration. It is estimated that after the implementation of GST, the state's tax revenue has declined by about Rs 20,000 crore every year. It is expected that the Center will pay GST compensation this year as well.

The bigger challenge is to raise revenue rather than reducing expenditure. Revenue plummeted during the flood and Covid crisis. Costs soared. The goal is to bridge this gap. On the budget, emphasis will be on awakening the manufacturing sector.