Thiruvananthapuram: Kerala Governor Rajendra Vishwanath Arlekar addressed the state’s financial issues during his inaugural policy speech at the 13th session of the 15th Kerala Legislative Assembly on Friday.

He noted that Kerala is experiencing financial stress due to the lack of GST compensation and decreased grants from the Central Government.

In his address, Arlekar stated,”Kerala has been facing financial stress due to tapering of revenue deficit grants and the cessation of GST compensation. In a detailed memorandum presented to the 16th Finance Commission during its visit to the state in December 2024, the challenges faced by Kerala were highlighted and ameliorative measures were requested. We hope for the best.”

Sworn in as Kerala’s 23rd governor on January 2, Arlekar assured that the state is committed to rehabilitating families displaced by the devastating landslides in Wayanad last year, with plans to complete the construction of a township within a year.

He also emphasized that Kerala has dealt with significant natural disasters over the past decade, and a project will be developed with assistance from the central government to tackle climate change.

The governor reiterated the government’s dedication to realizing the vision of “Nava Keralam,” which aims to enhance physical infrastructure, promote a knowledge-based economy, and make advancements in education and healthcare. The main objectives include making the right to secure housing a reality, eliminating landlessness, eradicating extreme poverty, ensuring sustainable solid waste management, and identifying individuals in need of palliative care.

The 13th session of the assembly will last for 27 days, from January 17 to March 28. Finance Minister K.N. Balagopal is scheduled to present the 2025-26 budget on February 7, with discussions planned for February 10, 11, and 12.