THIRUVANANTHAPURAM, November 9, 2025 — A major political storm is brewing in Kerala as the State Finance Department, headed by Minister K.N. Balagopal, faces heavy criticism for the severe financial neglect of local self-government institutions, specifically the six municipal corporations, including Thiruvananthapuram.
Official plan space documents reveal a shocking deficit in budget disbursements, with just months remaining until the crucial local body elections.
Massive Financial Shortfall
The state budget had allocated a total of ₹1045.57 crore for the six corporations across Kerala for the current financial year. However, eight months into the fiscal year (ending November), the Finance Department has released a mere ₹152 crore. This amount constitutes only 14.39% of the total budgeted allocation, leaving an astronomical arrear of ₹893.57 crore yet to be released.
With only four months remaining in the financial year, political analysts and corporation officials alike deem it virtually impossible for the Finance Department to release the remaining ₹893.57 crore.
Election Flashpoint
This financial crisis is set to be a significant campaign issue, potentially derailing the developmental activities in key urban centers just as the State Election Commission is expected to announce the local body poll schedule by November 13.
The Opposition, particularly the United Democratic Front (UDF), is expected to make this “financial negligence” by the LDF government a core plank of its campaign. The UDF has reportedly already gained an early advantage by announcing candidates in most places ahead of the official election notification.
The massive funding gap is causing major disruption to vital development projects and essential services managed by the corporations, sparking public discontent that could influence the outcome of the forthcoming polls.
