The Kerala Budget for 2025-26 was presented against the backdrop of an ever-deteriorating State finances. Total outlay is budgeted to grow by 14% from the revised estimates (RE) in the next financial year. RE for the current year casts doubts on all budgeted figures as they display significant variation from Budget Estimates (BE). For example, the Budget size has shrunk to ₹1,78,771 crore (RE) from ₹1,84,327 crore (BE). This is in spite of a slippagein fiscal deficit from budgeted 3.4% to 3.51%.