Kerala brought down the deficit for 2022-2023 to under 3 percent, in line with FRBM guidelines, but is still expecting to slightly breach the limit in 2024-2025 and 2025-2026.

The education sector in Kerala received a significant allocation in the state budget, with a total outlay of Rs 2,391.13 crore. This represents an uptick of Rs 111.84 crore over the previous budget. A significant amount of the money for school education has been set aside for continuing key initiatives such as midday meals and free uniforms, The New Indian Express reports.

A weak fiscal position has been a long-standing issue in Kerala. As mentioned in the budget speech, there is a realisation that the state cannot go into more distress. The finance minister has tried to set a new direction by announcing relevant economic opportunities the state could avail itself of in the current context. It is a welcome move as the state has advocated a knowledge economy in recent years, and it shows a consistency in approach.