Kerala Budget 2025 Highlights: readjusted Tax on EVs, disappointing Welfare Pension
On February 7, 2025 the annual budget of the southern state Kerala was presented by the Finance Minister Balagopal for the fiscal year 2025-26. Kerala has always been exemplary for their resilience against the challenges which arise both financially and naturally for the past few years. The given information ensures that the state has achieved a 70% increase in its own tax collection which aided to enlarge its financial position. The budget of 2025-26 predominantly focuses on the welfare schemes and the internal development projects. A huge wave of disappointment has been expressed by the welfare pension beneficiaries who were expecting a considerable increase.
“Two installments of arrears have been sanctioned this financial year. The remaining three arrears will be sanctioned in 2025-26. In the coming financial year, the respective monthly pension will be paid without arrears.” Kerala Finance Minister.
“Even as the Centre is tightening its grip on Kerala financially, the government is committed to protecting the basic needs of the people. The government spends more than Rs.11,000 crore annually to provide a monthly pension of Rs.1600 for over 60 lakh people” he added.
In addition to that, the readjusted tax on electric vehicles is receiving much attention. Because the government has decided to increase the tax on four wheeled private electric vehicles that are priced above fifteen lakhs will be eight percent, for the EVs above rupees twenty lakhs will be ten percent and ten percent of tax will be applicable for the vehicles with battery charging.
The other highlighting budget allocations for the year 2025-26 are as follows,
- Metro Rail Project
- National Highway Expansion
- K-Homes Project
- Wayanad Rehabilitation for which Rs.750 crore has been allocated
- Rs.100 crore has been allocated for replacing the outdated vehicles in the government offices.
- Rs.50 crore for the welfare of wildlife management.
- The Bio-Ethanol research has received Rs.10 crore
