Kerala Budget 2021: Laptops for All, Focus on Employment and Higher Education

And we’re back after the live blog was interrupted due to technical reasons.

The minister is talking about the significance of decentralisation and the need to set up regional industrial clusters. In this context, he moots mini industrial estates and a host of schemes to ensure that for 1000 people, at least 5 additional jobs each have to be created.

In 2021-22, 10,000 km streams and 100 km rivers to be cleaned, and protected using coir bhoovastra.

As part of the Shuchitva Keralam (clean Kerala) programme, all LSGs will attain cleanliness criteria. Kerala to be turned into a slaughter waste-free state. Organic fertilizer will be marketed under the Harithamithram brand.

As part of the 25th anniversary of People’s Plan Campaign, 25 books to be published in Malayalam and English.The People’s Plan was an iconic moment in decentralization

Honorarium of all LSG people’s representatives to be increased by Rs. 1000. The minister points out that during the past year, there were no treasury restrictions on local bodies.

Subhiksha Keralam is one of the government’s most ambitious projects. A key target is self-sufficiency in vegetables, egg and milk in 2-3 years. Kerala is the first state to announce MSP for vegetables. This is important for a State which has not traditionally been self-sufficient in vegetables. Coopmarts have been set up for the same.

A 10-year plan to plant at least 1 crore fruit trees a year will yield a revenue of Rs. 50,000 crore.

Rs. 116 crore has been allotted for the paddy sector. Kerala has the highest subsidy in India.

MSP raised to Rs. 28 per kg as opposed to the Central government’s Rs. 18/kg

Rs. 75 crore is allocated for coconut cultivation. A bulk of this will be to replace aging palms with new and more productive palms.

Public education has been considered one of the major victories in Kerala. Kerala’s public education has changed in an unprecedented manner, leading to a rush of students from private schools to public schools, says the minister School education has been completely digitised. Rs. 120 crore allotted to further modernise schools, by refurbishing furniture, laboratories, installing solar panels etc

Eventually each school should have a counsellor

ASHA workers have been protesting across the country for greater benefit. The minister highlights their work and says their allowance will be increased by Rs. 1000.

Rs. 420 crore will be allotted for medical colleges. New medical colleges at Konni, Idukki, Wayanad, Kasaragod will have priority for new appointments. E-Health and e-governance: Rs. 25 crore.

Ayurveda: Rs. 78 crore.

Covid vaccine will be free

Under the Jalanidhi scheme, 4.5 lakh households have got connections. Rs. 30 crore will be allotted to renovate defunct connections.

Under the LIFE Mission, 5 lakh houses to be built in 2021-22

Of the Rs. 120 crore in total allocation, Rs 30 crore will be spent for village playgrounds and Rs 20 crore on parks for people to gather, exercise, etc.

In this budget, Rs. 3 crore has been allotted for promoting the work of women directors, 2 crore for SC/ST directors with a cap of Rs. 50 lakh per person. 

Rs. 25 lakh will be spent for building memorials for social reform leaders.

Journalist, non-journalist pensions to be increased by Rs. 1000.

The minister talks about key aspects - Transgrid which will ensure greater electricity connectivity in the state and projects worth Rs 25,000 crore are underway for building roads. He also announces a slew of road projects which will be executed in the coming year. 

The minister talks about Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Bank, two financial institutions which have proved vital in raising resources during the time when States have been struggling. 

In 2021-22, Rs. 15,000 crore worth of  KIIFB projects will be completed. Thomas Isaac points out that the CAG is discriminating against Kerala and says most states have infrastructure investment institutions. "We have to fight this unitedly," says the minister referring to attempts to claim that KIIFB is unconstitutional. 

The Kerala Bank has Rs. 61,000 crore in deposits. Once NRI deposits are permitted by RBI, deposits will double, says Thomas Isaac. The minister adds that Kerala Bank can play a major role in funding the entrepreneurship financing that this budget has announced.

The minister says high priority will be placed on cleaning canals in cities. Kerala is the first state to have an e-Vehicle policy and a solar electric ferry.

2021-22 - KSEB to set up 236 charging stations for such vehicles.

Street lights being turned into LED lamps using KIIFB funds. This work should be completed in a few months.Under the Filament-free Kerala scheme, 1 crore bulbs have already been distributed.

200 crores have been allotted for preserving and increasing forest cover.

Rs. 2400 crore worth of projects have already started for the Kuttanad area and projects are on to ensure that the share of income coffee farmers receive in the Wayanad area increases through Wayanad Coffee.

The long-term dream of the residents of Wayanad, a medical college, will also become a reality this year, says the budget.

The minister says that this is the fifth year of gender budgeting. 19.54% of government spending is specifically focused on women, he says. The key focus is on employment. There will be specific schemes to promote entrepreneurship among women. 

The minister highlights the issue of the double burden faced by women and announces a Smart Kitchen scheme for mechanisation of kitchen work.

The government is launching a major campaign to combat violence against women this year. The target is to reduce violence against women by 25% in 5 years. There will be a mapping of violence in every panchayat, which will be conducted while protecting their privacy. Rs. 20 crore to be given to Kudumbashree as part of the campaign against violence against women. LSGs which follow guidelines to be given recognition.

The iconic Kudumbashree project has 45 lakh members. However, in order to enrol more members, auxiliary Kudumbashree units will be considered, especially to encourage the participation of young women.

Kudumbashree will be allotted a total of Rs. 1,749 crore, up from just Rs 75 crore five years ago. Community Development Society chairpersons’ honorarium will be increased to Rs. 8000. Anganwadi teachers’ pension to be increased by Rs. 2000 per month and anganwadi helpers’ pension increased by Rs. 1000.

VAT on LNG and CNG will be reduced to 5% from 14.5%. The Salary Commission report will be received in January and implemented this year.

The allocation for SCs and STs is higher than their share in the population, unlike the central government and other states. The SC sub plan amounts to 9.81% of the total plan outlay, while the ST sub plan come sto 2.83% of the total plan outlay.

SC sub plan - Rs. 2709 crore.

ST sub plan - Rs. 781 crore.

Total receipts for 2021-22 are estimated to be Rs. 1,59,427.24 crore. The total budgeted expenditure for 2021-22 is Rs. 1,59,427.21 crore. Revenue deficit is estimated to be 1.93%, and fiscal deficit is estimated to be 3.5%.

Just as in the case of the Indian economy, the economic slowdown affected Kerala as well. The state's economic growth rate in 2019-20 was lower compared to 2018-19, which adversely impacted tax revenues as well. The Covid-19 pandemic has meant a further contraction in economic activity across the world, and Kerala has been no exception. Hence, the final revenue receipts in 2020-21 would be lower than last year's budget estimates.

But the Kerala Budget 2021-22 projects that revenue receipts would grow significantly in the coming year as the world, the country and the state recovers from the pandemic crisis, enabling a significant rise in the state's expenditure such as those on capital investments and welfare spending.

The Kerala Finance Minister has emphasised the goal of transforming Kerala into a knowledge-based society, "with strides in modern employment opportunities and industrial growth while consolidating [the state's] achievements in the social sector".

The Minister concludes the budget speech with another poem by a school student.

This has been the longest ever Budget speech in the history of Kerala, confirms the Speaker.