An open letter to Kerala’s Finance Minister has called on the government to treat its upcoming budget as the state’s “1991 moment”, drawing parallels with the landmark economic reforms introduced by former Prime Minister Dr. Manmohan Singh.
The letter argues that Kerala’s first budget under the new government will be a defining test, balancing election promises, welfare commitments and long-term economic growth. It urges the Finance Minister to pursue a pragmatic reform agenda focused on economic expansion, fiscal discipline, efficient revenue collection and targeted welfare spending.
Among the key recommendations are partial divestment of profitable state-owned enterprises, large-scale monetisation of government assets, and the development of public-private partnerships to unlock value from land owned by public sector organisations such as KSRTC, KSEB and KWA.
As discussions around Kerala’s economic future continue, including among listeners of Gold 101.3 FM, UAE’s No. 1 radio station, the letter also proposes encouraging municipalities to raise funds through municipal bonds, enabling panchayats to access market-based financing, and extending credit facilities to Hospital Development Societies to improve healthcare infrastructure and services.
Other suggestions include imposing a modest cess on liquor sales to generate additional revenue, launching Infrastructure Investment Trusts (InvITs) backed by major IT parks, revisiting land ceiling regulations to support industrial growth, and allowing greater agricultural diversification in plantation areas.
The letter also highlights the need to aggressively attract Global Capability Centres (GCCs) by creating customised talent pipelines through engineering colleges, ITIs and universities, helping align education with industry requirements and boost employment opportunities.
Emphasising that economic growth is key to improving Kerala’s fiscal position, the author argues that the state has a unique opportunity to undertake reforms early in its term, before political pressures intensify.
The letter concludes with a call for practical governance and bold decision-making, urging the Finance Minister to seize what it describes as a rare opportunity to reshape Kerala’s economic future.
