Finance minister KN Balagopal on Monday hit out at the Union government for its “hostile approach” in giving Kerala its “rightful dues” and said the state will have to figure out a “plan B” if the “neglect” continues as he presented the 2024-25 budget promising investments worth ₹3 lakh crore over the next three years amid a financial crisis.

“The neglect towards Kerala reached its zenith during the current fiscal. We remain hopeful that the legal battle in the Supreme Court and the political agitation outside the court will improve matters…this budget is being prepared in the hopes that things will get better. On the contrary, what if the central government takes measures to centralise the fiscal system? What if the neglect towards Kerala continues?” he said in his budget speech.

He added they will have to figure out the “plan B” in such a situation. “We are not ready to make any cuts in the benefits provided by the state to its people. The development and welfare activities should continue at any cost and they will,” said Balagopal in his fourth budget of the second Pinarayi Vijayan government.

He said the thrust areas shall be tourism projects, which can be completed in a short span, allied development in and around the Vizhinjam and Cochin ports, industrial corridors of Kochi, Palakkad, and Kannur for which land has been acquired, and IT-enabled services.

Balagopal said the Vizhinjam International Seaport will become operational by May and that three types of activities were underway including those related to port construction, the development of allied infrastructure such as road-rail connectivity, and the creation of special development zones. He added international investors meet and a maritime summit would be held to attract investments related to the port.

Balagopal said the state government would go ahead with the Thiruvananthapuram and Kozhikode metro projects along with expansion works of the Kochi Metro. He indicated that the state government’s flagship and controversial K-rail semi-high-speed project has not been abandoned. “Consultations are ongoing with the central government in this regard,” he said.

Balagopal announced an increase in the minimum support price of rubber from ₹170 to ₹180, and ₹10 crore allocation for the Keraleeyam cultural programme to highlight the state’s achievements. The Opposition has called Keraleeyam an unnecessary waste of resources.

The electricity duty for consumers generating and using energy for their consumption has been increased from 1.2 paise to 15 paise per unit. The duty for the sale of power has been increased from 6 paise to 10 paise per unit.

The government proposed reductions in tax on All India Tourist Permit buses to prevent operators from registering vehicles in other states. The government estimates an additional resource mobilization of ₹1067 crore in the next financial year.

Balagopal said the government would take “special measures” to ensure timely payment of the pensions in the next financial year. The Communist Party of India (Marxist)-led government promised to increase the monthly social welfare pensions from ₹1600 per month to ₹2500 in its manifesto in 2021.

Balagopal announced a revised scheme will be formulated to replace the existing National Pension System for pensions for government employees.

Opposition leader VD Satheesan said the announcements “lacked reality” and accused the government of “demeaning” the budget by using it to level “political criticism” as elections approach.

“At the start and end of the budget, the Opposition has been criticised. So many other opportunities are available [for the government] to criticise the Opposition. A lot of time was spent talking about the Vizhinjam project which was brought by the previous [Congress-led] UDF [United Democratic Front] government. They are also taking pride in the Kochi Metro and Water Metro projects which were also brought during the UDF. The budget has severely disappointed the agriculture sector,” said Satheesan.