Thiruvananthapuram

Kerala Chief Minister V D Satheesan on Wednesday said his government is preparing its maiden budget under difficult financial circumstances and will need to identify additional revenue sources to support its development agenda.

Speaking ahead of the presentation of the United Democratic Front (UDF) government's first budget in the State Assembly on June 19, Satheesan, who also holds the Finance portfolio, acknowledged that the administration is facing significant fiscal limitations while pursuing ambitious development goals.

Referring to the budget tabled by the previous Left Democratic Front (LDF) government earlier this year, he noted that the current administration has inherited several financial constraints that cannot be ignored.

"We are working within the framework of a revised budget and have to take into account the realities and limitations that exist," the chief minister told reporters after a Cabinet meeting in the state capital.

Highlighting the financial challenge before his government, Satheesan said that while the state's development plan requires expenditure of around Rs 35,000 crore, there remains a substantial funding gap.

In a pointed remark aimed at the previous administration, he said his government now faces the difficult task of mobilising an additional Rs 20,500 crore to ensure planned projects can be implemented.

"It is an enormous challenge. Unless we succeed in generating the required resources, many of the proposed development initiatives may not be executed as intended," he said.

The chief minister stressed that the UDF government has its own vision for Kerala's development and intends to reflect that approach in the upcoming budget.

According to Satheesan, the new administration's policy priorities, development strategy and governance philosophy differ significantly from those of its predecessor.

"Our government has a distinct vision and policy direction. The budget will clearly reflect those priorities and our approach to development," he said, while declining to elaborate further before the formal presentation of the budget.

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The budget is expected to outline the government's roadmap for balancing fiscal discipline with development commitments amid mounting financial pressures.