Finance Minister K.N. Balagopal on Wednesday announced an additional outlay of ₹129 crore, including ₹70 crore more for civil supplies, in the State Budget for the 2024-25 fiscal.
The allocation for civil supplies has been hiked from ₹1,930.88 crore to ₹2,001 crore. The State Budget presented by Mr. Balagopal on February 5 had reportedly drawn flak from the CPI, which handles the portfolio, for insufficient allocation for Food and Civil Supplies department.
Mr. Balagopal, in his reply to the general discussion on the Budget, also announced that the allocation for the Kerala Farmers’ Welfare Fund Board will be raised to ₹120 crore. Further, Mr. Balagopal announced ₹2 crore for a revolving fund for the restoration of converted paddy fields. Both demands had emerged during the discussion on the Budget this week.
Wednesday’s announcements included an allocation of ₹2 crore for undertaking activities aimed at protecting government-owned land.
The Finance Minister announced ₹5 crore each for initial activities aimed at establishing a Science City in the State and an international cultural complex with the collaboration of NoRKA.
The Budget will earmark ₹3 crore for conducting a digital survey of culturally significant and diverse elements in Kerala culture, according to Mr. Balagopal. “Every region has its own beliefs and customs. It is important that they are documented,” he said.
In the education sector, ₹10 crore has been newly earmarked for Campus Industrial Parks, an ambitious ‘earn while you learn’ scheme promoting industry-linked academic research. ₹7 crore has been set apart for 16 newly-opened nursing colleges.
Modernisation of rural roads will receive special focus in works undertaken as part of the Budget allocation of ₹1000 crore for revitalising the construction sector, Mr. Balagopal said. The government will also ensure at least one project in every Assembly constituency under a ₹1000 crore allocation for implementing schemes that emerged from the Nava Kerala Sadas campaign.
The fresh outlays take the cumulative deficit at the end of the year from ₹273 crore to ₹403.94 crore.
Oppn. charge
The Budget lacks credibility and a cursory audit of Budget announcements made by the LDF government in the past seven years will prove it, Leader of Opposition V.D. Satheesan said.
He accused the LDF government of emulating the Narendra Modi government and abandoning plan in favour of projects, which is “a far-right method.”
The State government has rendered the State Planning Board inactive by banking on the Kerala Infrastructure Investment Fund Board (KIIFB) for implementing projects. “Does KIIFB give any priority for SC/ST categories? When projects are carried out through KIIFB, the benefits for these categories are lost,” he alleged.
Fiscal indicators in the Budget expose the Finance Minister’s claims of Kerala shaping up as a ‘sunrise economy,’ Mr. Satheesan said.
The revenue deficit-GSDP ratio has shot up from 0.88% in 2022-23 to 2.09% in 2023-24 (revised estimates).The fiscal deficit-GSDP ratio rose from 2.44% to 3.45%.
GST revenue grew by a mere 10% over 2022-23, and not as 20% as Chief Minister Pinarayi Vijayan and the Finance Minister claim, Mr. Satheesan said. From ₹ 29,513 crore it rose to ₹ 32,596 crore. The growth rate should have exceeded 30% if tax collection were efficient, he said.
The Assembly will discuss and vote on the Vote on Account on Thursday, the final day of the 10th session of the 15th Kerala Assembly. The Kerala Finance Bill, 2024, the Kerala Appropriation Bill, 2024, and the Kerala Appropriation (Vote on Account) Bill, 2024, will be presented in the House.
