The first budget of the V D Satheesan government is a serious attempt at economic course correction. At the same time, it is also a reminder that governing Kerala is far more difficult than criticizing those who do. For a decade, the United Democratic Front (UDF) sat in opposition and attacked the Left Democratic Front (LDF) for everything from fiscal management to policy choices and governance priorities. Listening to its leaders, one would have thought Kerala's problems stemmed primarily from incompetence and that a change of government would unlock a fundamentally different approach. But barely a month into office, reality has arrived.

The budget presented by the new government is not revolutionary, nor is it ideological or even particularly partisan. Instead, it is a practical acknowledgment of the same constraints that every Kerala government eventually encounters.

Debt is high, revenue is limited, and welfare commitments are non-negotiable. Economic growth cannot be postponed indefinitely. In that sense, one can say that the budget represents the triumph of governance over rhetoric.

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The most striking feature of the budget is that it finally attempts to answer a question that Kerala's political class has spent years avoiding. Where will future growth come from? The emphasis on ports, logistics, tourism, maritime development, startups and MSMEs suggests that the government understands that the old model has reached its limits.

Remittances remain vital, consumption remains important, welfare remains essential, but none of them can generate the scale of employment required for the future. The focus on the maritime economy is particularly welcome.

Kerala has one of the longest coastlines in the country and yet has never fully leveraged its strategic advantage. For........

© Mathrubhumi English