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Amid UDF-LDF spat over Kerala finances, govt reminds departments of need for ‘austerity’ in Budget estimates

The Hindu Bureau· ·2 min read · 0 reactions · 0 comments · 4 views
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Amid UDF-LDF spat over Kerala finances, govt reminds departments of need for ‘austerity’ in Budget estimates
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While the UDF White paper, presented in the State Assembly in June, had claimed that Kerala’s fiscal structure was under serious and growing strain, the CPI(M)’s ‘White Paper of Facts’ sought to counter it, saying the State registered strong growth under the 10-year LDF rule. Pinarayi releases ‘counter’ white paper, challenges UDF claims on Kerala’s economyPresenting the Revised Budget for 2026-27 on June 19 after the UDF took over, Chief Minister V.D. Kerala govt’s White Paper on fiscal health seeks revamp of loss-making public sector enterprisesEstimates for the non-Plan expenditure have to be submitted by September 10, Plan expenditure by September 15 and revenue and other receipts by September 20.

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Canonical URLhttps://www.thehindu.com/news/national/kerala/amid-udf-ldf-spat-over-kerala-finances-govt-reminds-departments-of-need-for-austerity-in-budget-estimates/article71271523.ece
Publication timeMon, 27 Jul 2026 11:30:42 +0530
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Amid the spat between the ruling Congress-led UDF government and the Opposition CPI(M)-led LDF over Kerala’s financial health, the State Finance Department has repeated its annual reminder to government departments to keep in mind the need for “austerity” when preparing the estimates for the next State Budget for the 2027-28 fiscal.“The financial constraints being faced by the State government make it imperative for the government to prepare the Budget 2027-28 with austerity,” the Finance Department has said in a communication to sister departments while issuing the deadlines for submitting the estimates.

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