The Kerala Infrastructure Investment Fund Board (KIIFB) continues to be the growth engine of the government. The State Budget, presented in the Assembly by Finance Minister T.M. Thomas Isaac on Friday, lays stress on this anti-recession package which is expected be an elixir to boost the State’s economy. Steps have been completed for spending ₹20,000 crore for its projects in 2020-21.
The Budget reaffirming the government’s commitment for bettering the lot of indigent sections, accelerating resource mopping, enhancing expenditure efficacy and containing splurge.
Anticipating a shortfall of ₹10,113 crore in tax income and a drastic cut in Central transfers, the Budget lays accent on scaling up expenditure for developing infrastructure facilities, stepping up power generation and creating more jobs to ward off the chilling impact of economic slowdown.
Hike in honorarium
A ₹100 hike in all welfare pensions, ₹50 increase in daily wages of school catering employees, ₹500 increase in the honorarium of ASHA workers and proposal to open 1,000 food courts for providing meals at ₹25 are aimed at the weaker sections.
The plan to step up the production of anti-cancer drugs and essential medicines for post-organ transplant surgery from Kerala State Drugs and Pharmaceuticals Limited at affordable prices would be a solace for those who exhaust substantial sums for medical bills.
Construction works for ₹6,000 crore have been proposed for Kochi.
A package has been announced for start-ups. Loan without collateral security has been mooted for start-ups executing government orders.
A second Kuttanad package of ₹2,400 crore, a coastal package of ₹1,000 crore and packages of ₹1,000 crore for Idukki and ₹2,000 crore Wayanad are some of the highlights of the Budget.
Power sector reforms, mainly the Kochi-Edamon corridor, would help seamless transmission of power equivalent to 2,000 MW of installed capacity and on completing the Transgrid project Phase II power requirements up to 2040 could be fulfilled. Sale of CFL and filament bulbs will be banned from November.
Tourism has a shoe-string allocation. A sum of ₹320 crore has been earmarked for the tourism sector that has survived the ravages of two floods. The government’s thrust on the industries sector has reaped dividends. Its share in the State’s domestic revenue has risen from 9.8% in 2014-15 to 13.2% in 2018-19.
Payments for local bodies have been exempted from treasury curbs. About 4.98 lakh ineligible beneficiaries will be weeded out of the list of welfare pensioners and it would help gain ₹700 crore.
. Redeployment of staff is also on the anvil. Scrutiny of Goods and Services Tax (GST) returns and an amnesty scheme has been announced to collect Valued Added Tax (VAT) arrears.
Amendments to the Kerala Stamp Act and Registration Act have been mooted. Revision of one-time building tax and fair price of land have been proposed to earn additional revenue.
