Kerala Budget 2025: Relief for govt employees; Two salary revision arrear installments to be merged into PF

Kerala budget 2025: In his budget speech, Finance Minister K.N. Balagopal declared that Kerala has successfully overcome a critical financial crisis.

Thiruvananthapuram: The state budget offered relief to government employees, with Rs 1,900 crore allocated for two pending installments of salary revision arrears, to be paid this financial year. The lock-in period for two DA arrear installments will be waived, and Rs 600 crore for service pension revision arrears will be released in February. 

Finance Minister KN Balagopal on Friday (Feb 7) while presenting the Budget stated that the financial strain and pending dues were due to the central government's cuts in tax share and borrowing rights. However, he acknowledged the employees' cooperation and assured the assembly that their rights, along with those of pensioners, would be safeguarded.

The Finance Minister opened the budget speech by stating that the state has successfully navigated a crucial period of financial difficulty. He emphasized that the government opted for transparency in addressing financial challenges instead of hiding them. Despite the financial strain, development activities remained unaffected, and Kerala is now poised for significant growth, Balagopal remarked.