CPI(M) Central Committee member and Kerala’s Finance Minister, Dr. T.M. Thomas Isaac is presenting Kerala Budget 2019 at the Kerala Legislative Assembly now. This is the 10th Budget presented by the two-time Finance Minister Dr. T.M. Thomas Isaac. The budget presentation will begin at 9:00 AM. Kerala Budget 2019 will provide a clear picture about the projects the government will be implementing to rebuild Kerala after one most the most devastating floods the State has ever witnessed.
Earlier, Dr. Thomas Isaac said in a Facebook post that he had prepared each Budget with the perspective of strengthening and driving forward the discussions on Kerala’s development. The approach was not a mere presentation of expenditure allocation and allocations to the departments. “Kerala Budget 2019 too, will raise the debates on development to a new level,” he added.
The Finance Minister said that the growth rate estimated for the financial year 2018-2019 was not achieved as a result of the Kerala floods, and Goods and Services Tax implementation. In the coming financial year too, Kerala’s economy is expected to face a similar situation. The expected growth rate, therefore, will be 1.5% lesser than estimated. The budget will also take up the challenge of reducing the fiscal deficit and revenue deficit, but without reducing government expenses in various welfare schemes initiated by the Kerala Government after Left Democratic Front sworn into power.
Kerala Budget 2019 will have proposals to impose a 1% cess, in addition to GST, on all items. It is expected that all essential commodities which are under the 5% GST slab, will be exempted from the cess. However, a clear picture of this will be revealed only in the budget.
The debate on the Kerala Budget 2019 will begin on February 4 at Kerala Legislative Assembly. The Budget discussions will continue on 5 and 6. Discussions and voting on Vote on Account will be held on 7 February 2019.
In a major announcement, the interest on loans taken by flood-affected traders for a particular period will be borne by the government. A permanent complex will be built for Kerala Mart.
In a State where 13% of population are senior citizens (above the age of 60), the Minister announces an increase in all welfare pensions by a sum of Rs. 100 a month. A palliative network will be set up to take care of senior citizens who require care.
Rs. 10 Crore will be spent to make hospitals friendlier for senior citizens
42 Lakh people in the State are benefiting from pensions. Of this number, a quarter began getting pensions for the first time after this government came to power.
A sum of Rs. 7533 Crore is being allotted for pensions of which only Rs. 150 Crore comes from the Central government. Pension beneficiaries get Rs 13500 per year in Kerala, Isaac notes, comparing it to the Rs. 4000-5000 that is being talked about in the context of minimum income guarantee
100 new BUDS schools will be set up for disabled children. A sum of Rs. 13 crore has been announced for barrier-free Kerala. Rs. 42 crore will be provided as financial assistance to caregivers for the disabled.
A sum of Rs. 5 crore has been assigned for the Rainbow scheme for transgenders. Transgenders will also be allowed to take part in the schemes of Women Development Corporation.
A sum of Rs. 350 Crore has been allotted for State government schemes in education and Rs. 200 Crore for central schemes.
Kerala Finance Minister Dr. Thomas Isaac highlights the significance of Sabarimala being the biggest pilgrimage centre in the State. A sum of Rs. 40 Crore has been allotted for a sewage treatment plant in the Pampa river. A sum of Rs. 739 Crore has been allotted for the development of facilities for Sabarimala.
The highest outlay in the budget is for health at a total of Rs. 1406 crore. Rs. 600 crore is from the National Health Mission. Rs. 788 crore has been allotted for public healthcare facilities
New land has to be found for the Wayanad medical college as the existing plot was found to be unsuitable during the flood.
Rs. 73 crore has been allotted for the Regional Cancer Centre. A new block will be completed in 2020.
In the field of education. Rs. 300 Crore will be spent for upgradation of college buildings. The construction of many of the District Cultural Centres announced last year will begin in 2019-20.
Digitalisation of newspaper archives in various libraries across the State will be taken up.
The minister moves to the public works department. Half the expense for the Wayanad - Bandipur Elevated Highway will be borne by Kerala government. Rs. 1000 Crore will be spent on rejuvenation of KSRTC.
In a major announcement, the Thiruvananthapuram International Airport company will be registered to take part in the tender to buy Thiruvananthapuram airport which the centre has decided to sell.
Rs. 892 Crore is the total outlay for drinking water schemes. Rs. 280 Crore for new drinking water schemes and Rs. 208 Crore for forest protection
A sum of Rs. 13867 crore will be allocated for Local Self Governments. The fund allocation for local bodies will be increased from 23.5% to 24.5%.
In yet another move towards sustainability, 90% subsidy will be given for enterprises focusing on solid waste management at source, up from 50% subsidy now. A campaign will be run to set up compost pits in all households in rural areas.
A Welfare fund to be established for employment guarantee scheme workers. A sum of Rs. 80 Crore will be allotted for an income guarantee scheme for unorganised sector workers.
Tax revenues are rising by 10% per year, but expenses are rising by 16-17%. Some people say expenses should be cut back. That will be suicidal. There is a tendency of declining remittances due to problems in Gulf countries.
Dr. Thomas Isaac elaborates on the general economic crisis faced by the State. Kerala is the number one State in terms of per capita consumption expenditure. However, Tamil Nadu and Telangana are among the States which have better GST performance than Kerala.
The difference is that the basis of consumption in those states is production in their own states. For Kerala, the problem is that there are no check-posts now to plug leakages.
The revenue deficit has been 2.1% on an average for past five years. In 2019-20, the GST revenues have to increase by 30% to regain fiscal balance. That is possible, reassures Dr. Isaac in the Kerala Legislative Assembly.
Automatic number plate reading and other facilities are being implemented to improve tracking of freight vehicles and revenue collection.
For the rebuilding Kerala, one percent cess for the products and services sold in Kerala will be levied. However, there will be no cess for small scale products. There will be an additional 0.25% cess on gold and silver products.
50% concession in tax for newly registered electric vehicles.
The budget will see a 13.88% increase in expenditure. A 9.81% rise in revenue expenditure is expected and a 15.35% rise in revenue receipts. Revenue deficit to come down from 1.68% to 1.00%. Capital expenditure to increase by 53.30%, a record in the history of the State. Fiscal deficit would be 3.00%.
In 2018-19, 56.03% of borrowings were used for meet revenue expenses. In 2019-20, this would come down to 33.40%, which would be a positive development.
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