Kerala Finance Minister KN Balagopal
Thiruvananthapuram: Kerala Finance Minister K N Balagopal on Friday presented the Left government's budget for the fiscal 2023-24, allocating Rs 100 crore for welfare programmes and setting aside Rs 2,000 crore for tackling price rise, besides announcing a slew of initiatives for the infrastructure and higher education sector.
Beginning the budget speech on a positive note, the Minister said the southern state has bravely overcome COVID challenges and finally returned to the path of growth and prosperity.
Though the state's economy is facing challenges due to the financial policies of the Centre and its decision to impose cuts on its borrowing limit, Kerala is not in a debt trap, he said.
Assuring that the financial constraints would not impact the welfare and social security schemes of the government, Balagopal said Rs 100 crore would be set aside for welfare development programmes in the budget.
"A total of Rs 2,000 crore will be allocated for tackling price rise in the state," he said.
The FM said common people would not be ignored while announcing big projects and Rs 80 crore would be allocated for alleviating extreme poverty in the southern state.
A whopping Rs 1,773 crore has been allotted for the education sector in the state as per the State Budget.
A total of Rs 600 crore would be set aside for rubber subsidy in the state budget, he said, adding that a separate Research and Development budget would be presented to give more focus to the R&D sector.
The Finance Minister also allocated Rs 971 crore for agriculture. The Minimum Support Price of coconut was increased by Rs 2 to Rs 34 in the budget.
One-time tax on electric motor cabs and electric tourist motor cabs has been reduced to 5 per cent of the purchase value.
The existing fair value of land will also be increased by 20 per cent according to the budget.
An extensive industrial and commercial centre will be developed in the area around the under-construction Vizhinjam port, he said. “The Vizhinjam Sea Port can be developed into the biggest transshipment harbour in the world. It is strategically placed on one of the busiest sea routes in the world,” the minister said.
The total cargo exports from Kerala have increased from 1,26,619 tonnes in 2018 to 2,65,538 tonnes in 2022, according to the Economic Review. The government is hoping to increase these figures substantially through the $900 million Vizhinjam project.
Social Security Cess will be imposed on the sale of petrol and diesel at the rate of Rs 2 per litre and on Indian Made Foreign Liquor (IMFL).
More focus would be given to the "Make in Kerala" project to increase the state's domestic production and give a boost to employment and investment opportunities, the minister added.