E-Paper
Kerala tables budget, focus on investments
Some of the important announcements in the budget include a hike in minimum support price of rubber from ₹170 to ₹180 per kg
Kerala finance minister KN Balagopal on Monday presented the budget for the 2024-25 which promised to attract investments worth ₹3 lakh crore in the next three years and declined to hike social welfare pensions, dues of which are pending for several months.
“Programmes are being planned to attract investments to the tune of at least ₹3 lakh crore in the next three years. The thrust areas shall be the projects in tourism, which can be completed in a short span, allied development activities in and around the Vizhinjam and Cochin ports, development of industrial corridors of Kochi, Palakkad and Kannur for which land has already been acquired and IT-enabled services,” Balagopal said in the assembly.
Balagopal, presenting the fourth budget of the second Pinarayi Vijayan government, targeted the Centre for its “hostile approach” in giving the state it’s rightful dues and warned that the state will have to figure out a Plan B if the “neglect” continues.
“The neglect towards Kerala reached its zenith during the current fiscal. We remain hopeful that the legal battle in the honourable Supreme Court and the political agitation outside the court will improve matters. This budget is being prepared in the hopes that things will get better,” he said in his speech. “On the contrary, what if the central government takes measures to centralise the fiscal system? What if the neglect towards Kerala continues? In such a situation, we will definitely have to figure out a plan B. We are not ready to make any cuts in the benefits provided by the state to its people. The development and welfare activities should continue at any cost and they will.”
The minister underlined that the Vizhinjam international seaport will become operational by May and three types of activities were underway including those related to port construction, development of allied infrastructure such as road and rail connectivity and creation of special development zones. An international investors meet and a maritime summit would be held to attract investments with regard to the port, he said.
Among infrastructure projects, Balagopal said the state government would go ahead with the Thiruvananthapuram and Kozhikode metro projects, along with expansion works of the Kochi Metro.
He also indicated that the state government’s flagship and controversial K-rail semi high-speed project has not been abandoned. “Consultations are ongoing with the central government in this regard,” the minister said.
Some of the important announcements in the budget include a hike in minimum support price of rubber from ₹170 to ₹180 per kg, an allocation of ₹10 crore for Keraleeyam, a cultural programme to highlight the state’s achievements and dubbed by the opposition as an unnecessary waste of resources, allocation of ₹250 crore for the Digital University of Kerala, a scheme to set up care centres for the state’s elderly, timely changes in acts and rules related to sandalwood cultivation, ₹ 265 crore allocation for Kudumbashree, a scheme to empower women, and an imposition of a fee of ₹10 per litre on the sale of Indian-made foreign liquor.
As part of resource mobilization, electricity duty for consumers who generate and spend energy for their own consumption has been hiked from 1.2 paise to 15 paise per unit, and electricity duty for sale of power increased from 6 paise to 10 paise per unit. The government also proposed reductions in tax of All India Tourist Permit buses to prevent operators from registering vehicles in other states. Through these measures, the government estimates an additional resource mobilization of ₹1,067 crore in the financial year that starts in April.
While the Left Democratic Front led by the Communist Party of India (Marxist) had promised to hike the monthly social welfare pensions from ₹1,600 per month to ₹2,500 in its election manifesto in 2021, it was ruled out considering the state’s financial distress. In his budget speech, the minister limited himself by saying the government would take special measures to ensure timely payment of the pensions.
The finance minister also announced that a revised scheme will be formulated to replace the existing national pension system for pensions for government employees.
The announcements “lacked reality”, leader of the opposition VD Satheesan of the Congress party said, accusing the government of demeaning the budget by using it as a document to make political criticism as parliamentary elections approach.
“At the start and end of the budget, the opposition has been criticized. So many other opportunities are available (for the government) to criticize the opposition. A lot of time was spent in talking about the Vizhinjam project, which was brought by the previous United Democratic Front government. They are also taking pride in the Kochi Metro and Water Metro projects, which were also brought during the UDF regime,” Satheesan said. “The budget has severely disappointed the agriculture sector.”
