In his budget speech on Thursday, the Finance Minister of Kerala, KN Balagopal, declared the imposition of a social security cess of Rs 2 per liter on petrol and diesel. The move, which is part of the second full budget of the Left Democratic Front government, is expected to generate an additional revenue of Rs 750 crore for the Social Security Seed Fund. The minister also announced a cess on liquor.
According to the Finance Minister of Kerala, KN Balagopal, the state has financial constraints, but is not in debt. He stated that the state is in a position to take on more loans for development projects, but the conservative stance of the central government is hindering progress. Balagopal also highlighted the changing population structure in Kerala, with a declining birth rate and an increasing number of senior citizens, leading to a potentially largely dependent population. He stressed the need for a central expression scheme as many young people are leaving for education and employment abroad