Kerala Allocates ₹150.81 Crore for Expatriate Support in Budget 2025-26

Kerala's budget allocates ₹150.81 crore for Non-Resident Keralite Affairs, including ₹77.50 crore for rehabilitating expatriate Malayalis who lost their jobs overseas. ₹25 crore is set aside for the NoRKA Department Project for Returned Emigrants and ₹23 crore for the Non-Resident Keralite Welfare Fund Board. The budget recognizes the contribution of expatriates to the country's economy, with Kerala expats contributing 21% of the total foreign remittance.

Kerala, India's southernmost state, has allocated a substantial portion of its budget for the welfare of its non-resident population. The budget, which was presented on February 5, 2024, by Finance Minister K N Balagopal, recognizes the significant contribution of expatriates to the state's economy [1]. With Kerala expats accounting for 21% of the total foreign remittances [1], this allocation underscores the importance of supporting this vital source of income.

The budget has set aside ₹150.81 crore for Non-Resident Keralite Affairs (NRKA), marking a notable increase from the previous year's allocation. This includes ₹77.50 crore for the rehabilitation of expatriate Malayalis who lost their jobs overseas due to economic downturns [1]. This allocation reflects the state government's commitment to addressing the challenges faced by its diaspora during times of economic hardship.

Furthermore, the budget has allocated ₹25 crore for the NoRKA Department Project for Returned Emigrants and ₹23 crore for the Non-Resident Keralite Welfare Fund Board [1]. These initiatives aim to provide support and assistance to returning expatriates, helping them reintegrate into the local economy.

The budget's focus on NRKA aligns with the state's overall economic priorities. Kerala's Gross State Domestic Product (GSDP) is projected to grow by 11.7% in 2024-25, and the state aims to achieve a fiscal deficit of 3.4% of GSDP [1]. With foreign remittances playing a crucial role in the state's economic growth, supporting NRKs is a strategic move to ensure continued financial stability.

The Kerala government's commitment to its non-resident population extends beyond financial assistance. The state has also launched the Kerala Climate Resilient Agri Value Chain Modernisation Project with assistance from the World Bank [1]. This project aims to enhance the climate resilience of agriculture value chains, benefiting both local farmers and returning expatriates.

In conclusion, Kerala's budget for 2024-25 reflects the state government's commitment to supporting its non-resident population amid economic challenges. With substantial allocations for NRKA and initiatives to promote economic growth, the budget aims to ensure continued financial stability and development for Kerala.

References:
[1] PRS India. (2024, February 5). Kerala Budget Analysis 2024-25. https://prsindia.org/budgets/states/kerala-budget-analysis-2024-25