Curbs on government spending extended by another year in Kerala

The curbs on spending by the State government on components such as the purchase of new vehicles have been extended again for another year.

A Finance department order issued by Additional Chief Secretary (Finance) K.R. Jyothilal cited the “current financial situation of the State and the need to control expenses” for the extension.

The order is applicable to the refurbishment of government buildings and purchase of vehicles and furniture for government offices and institutions. They will be in place for another year from November 8, 2025, given the need to tone down expenditure.

These curbs were part of broader austerity measures that were originally imposed in the wake of the COVID-19 outbreak in November 2020. Those measures were adopted on the recommendations of committees appointed to assess the financial position of the State in the context of the panedmic.

Eased the curbs

After the initial orders issued in the wake of the pandemic, the government had eased the curbs after the State emerged from the pandemic. However, the aforementioned measures were retained given the financial crunch that the State subsequentlty experienced. Orders were issued extending the toned-down curbs in November 2021, November 2022, November 2023 and, now, November 2025.

In October, the State government had announced a slew of welfare measures including a hike in the social security-welfare fund pensions. Kerala was expected to incur an additional burden of ₹10,000 crore on account of the measures.