Thiruvananthapuram, Facing an acute financial crisis, the Left government in Kerala on Thursday decided to cut unnecessary expenditure and prioritize certain areas in the current financial year's budget.

In a statement, the Chief Minister's Office said the state Cabinet has decided to make necessary adjustments to the budget allocation for the financial year 2024-25, due to economic constraints caused by central policies.

The Cabinet meeting, chaired by Chief Minister Pinarayi Vijayan, constituted a ministerial sub-committee comprising ministers from key departments, including Finance, Revenue, Industry and Law, Water Resources, Power, Forest and Local Self-Government and Excise, to make adjustments necessary for the budget allocation.

The statement said that before the ministerial committee approves projects, including those currently under consideration, their necessity will be examined. This will be done by a committee comprising the chief secretary, finance secretary, planning secretary and secretaries of concerned departments who will review and make recommendations.

Although the statement does not specify the nature of the adjustments, official sources revealed that the measure aims to cut unnecessary expenses and prioritize areas that directly impact citizens.

The decision came after a dismal result in the Lok Sabha elections by the ruling CPI(M)-LDF. He had urged the voters of the ruling front to carefully review the performance of the government. The LDF could win just one Lok Sabha seat out of 20 in Kerala, leading to close scrutiny of the government's actions.

Meanwhile, the Cabinet also decided to ensure proper coordination between various departments for development projects and activities. For this purpose, a ministerial subcommittee will be formed made up of the Minister of Finance, the Minister of Revenue and the Minister of Justice.

The minister of the department dealing with the issue in question will be specially invited to the meeting as a special guest, the CMO statement said.

The Chief Secretary will be the secretary of the committee.

The committee will submit its recommendations, which will be implemented with the approval of the Chief Minister, he added.