Kerala budget: A pragmatic one sans drama and magic

The budget presentation by Thomas Isaac was dotted with popular quotes and poems - including those written by school children - and brimmed with his expertise in financial planning and strategy. His budget used to introduce various means and tricks to generate revenue for the State. Isaac, who designed initiatives like Kerala Infrastructure Investment Fund Board (KIIFB) to find investment for public sector development projects, relied on the State-run lottery and liquor sales as means to generate more income.

Thiruvananthpuram:Kerala Finance Minister K N Balagopal presented his maiden State budget for the financial year 2021-22 in the Assembly on Friday. In the past five years, we have seen the budget presentation by Dr Thomas Isaac, an expert economist, who was Balagopal’s predecessor as the State Finance Minister.

The budget presentation by Thomas Isaac was dotted with popular quotes and poems - including those written by school children - and brimmed with his expertise in financial planning and strategy. His budget used to introduce various means and tricks to generate revenue for the State. Isaac, who designed initiatives like Kerala Infrastructure Investment Fund Board (KIIFB) to find investment for public sector development projects, relied on the State-run lottery and liquor sales as means to generate more income.

After five years of Isaac’s budgets, Kerala keenly looked forward to knowing what would be in store in the maiden budget presentation of the second term of Pinarayi led LDF Government, by the new Finance Minister K N Balagopal.

As Balagopal opens the 'budget box...'

No magic tricks to fill the exchequer in a pandemic-hit State reeling under a severe economic crisis could be found as Finance Minister K N Balagopal opened the ‘budget box’ and presented his debut budget in the State Assembly, on Friday.

Balagopal’s budget did not have anything that added to the burden of the common people who are already suffering the effects of the pandemic, despite it being the first budget presentation of the second term of the LDF Government and well knowing that the State will not face elections in the near future. A speciality of this budget is that there are no fresh tax proposals, though the Minister mentioned that increasing taxes was inevitable in the current financial scenario of the State.

The emphasis given to strengthen the Health sector can be seen in several initiatives proposed to tackle the prevalent health emergency situation and a possible third wave of COVID, in a farsighted, realistic manner.

This budget effectively remains a continuation of the one presented by Thomas Isaac right before the elections and long term plans and policies set firth remain unchanged, while Balagopal had to earmark additional funds for free COVID vaccination for all, and also find means to tide through the devastating second wave of COVID and prepare the State for the third wave.

The budget with special attention to the Health, Education, Agriculture, Coastal and Tourisms sectors has been prepared based on the election manifesto presented by the LDF.

Farsighted, pragmatic budgeting

The budget has been prepared by keeping in mind that large scale projects and extravagant expenses might irk common people at a time when they remain locked up indoors and go through a crisis. It is clear that the Pinarayi Government would continue with the same policies it had followed in the past five years.

Special consideration has been given to students, farmers, labourers, small scale industrialists, fishermen, educated youth, non-resident Keralites, KSRTC, people associated with the tourism sector and such in the budget. Some of the people friendly and farsighted declarations in the budget include free COVID vaccination for all, a project to reduce the mental stress in students during the COVID times, expand employment schemes declared in the previous budget for the educated unemployed in the State, announcement to ensure a reasonable price for the produce to local farmers, a programme to create 12 crore work days as part of the MGNREGA scheme, Rs 2000 crore credit package for the farm sector, Rs 2000 crore for the primary cooperative societies, loans of Rs 1000 crore for Kudumbasree Ayalkkoottam (neighbourhood groups), a Rs 1500 crore programme for the coastal protection and Rs 5300 crores for the sea wall construction.

Aim for a 'healthy' Kerala

This budget highlights major announcements for the Health sector in an unprecedented manner. Balagopal goes for a high spending on the Health sector in his maiden budget, with several projects and plans meant to boost our public health system, even as we combat the second wave of COVID and prepare for the next.

Declaring that COVID vaccination would be free for all, Balagopal said Rs 1000 crore has been earmarked in the budget for the free vaccination of those aged above 18 years and below 45 years. Another Rs 500 crores have been allocated for the purchase of the related equipment. A second COVID stimulus package of Rs 20000 has been declared to tide over the pandemic crisis in the State. This includes Rs 2800 crore to tackle the health emergency in the State.

Balagopal said, ten bedded isolation wards would be set up at all Primary Health Centres (PHCs) across the State. A vaccine research institute would be set up in Kerala for which Rs 10 crore has been earmarked, he said. Rs 8900 crores would be disbursed directly to the people who have lost their livelihood in the COVID crisis. Rs 8300 crores has been allocated as part of the COVID stimulus package towards interest and subsidy for loans thereby rejuvenating the economy.

Each Medical College will have a separate block to handle contagious diseases. Isolation blocks would be set up at Thiruvananthapuram and Kozhikode medical colleges this fiscal year itself, at an outlay of Rs 50 crore.

Foreseeing the third wave of the COVID pandemic, the emergency medical facility for children would be strengthened. As the first step in this direction, the bed strength of pediatric ICUs will be enhanced. In select district and general hospitals where the space is available, new paediatric ICU wards would be set up. Rs 25 crore has been allocated for this as a preliminary expenditure.

Modernise agricultural sector

The first budget of Pinarayi government’s second term aims at a thorough modernisation of the farm sector. The budget proposes to attract those who lost jobs in COVID into the farm sector. In the next fiscal, Rs 2000 crore would be provided as loans in agriculture sector. Loan schemes from NABARD at the interest rate of 4 per cent would be made available to the Primary Cooperative Societies through the Kerala Banks.

A reasonable price would be ensured for farm produces. As part of modernising the Farm Development and Farmers Welfare Department, all Krishi Bhavans would be converted into ‘Smart’ Krishi Bhavans. Distribution of quality planting materials, farming according to the soil’s nature, farm maintenance, harvesting, usage of warehouses, cold storage chains and marketing of farm produce would all be enhanced.

In order to enable an effective coordination of these activities, cloud computing block chain, artificial intelligence and such tools would be used. As a preliminary expenditure for reviving agriculture and allied sectors, Rs 10 crore has been allocated. The budget also announces that farm crops would be protected and five Agro parks would be set up in the State. Value added products are to be manufactured from the spices.

A boost for Education

A comprehensive revamp for the State's education system would be implemented right from the school level, K N Balagopal said, in his budget address. A reorganisation from the school level is necessary according to the present day needs in the State’s education system, to move forward on par with international standards.

The Minister said, a high level committee would be constituted to study the present system and come up with practical suggestions and recommendations - within three months - for its reorganisation. Online counselling sessions and physical education classes would also be conducted in an effort to improve the mental health of the students during the pandemic times, he added.

Employment for the educated

This was a major programme announced in the last budget presented by former finance Minister Thomas Isaac. Creating more than 20 lakh job opportunities on the digital platform and employing woman professionals through special training were the key proposals made then. These proposals have been revised in Balagopal’s maiden budget.

It plans to facilitate training and finding job through the State’s platform - Kerala Development and Innovation strategic Council (K DISC). There would be a facility for career counselling. Professional HR agencies and placement officers have been sought to express interest to associate with the platform. As a continuity to this, co-operation with the global recruitment brands Monster and freelance market chain - freelancer.com have been assured. The job seekers would be ensured with social security and basic faciltiites, the budget mentions.

K DISC has started operations as a registered society including the Chief Minister and the ministers of Industry, Higher Education, Labour and skill, and Agriculture department, the Finance Minister informed. The ‘Knowledge economy fund’ has been increased to Rs 300 crore in the budget for skill promotion, technological transformation and enhancing higher education.

Saving KSRTC

The Minister presented schemes to solve the severe crisis in the public transport system of Kerala - Kerala State Road Transport Corporation (KSRTC), which was among the most hit in COVID. As many as 3000 KSRTC diesel buses would be converted to CNG (Compressed Natural gas) in a phased manner, in an effort to reduce the operational cost and carbon footprint. Of the total outlay - Rs 300 Crore- for CNG conversion project, the allocation for the current fiscal has been enhanced to Rs 100 crore.

Projects would be designed and implemented in association with the KIIFB for setting up Puthukkad KSRTC Mobility hub, and Kollam Modern Bus Stand. As a start for the environment friendly transportation initiative that would be implemented in the State, ten hydrogen- run buses would be introduced on Kerala roads, in association with the Indian Oil Corporation and the CIAL, on a pilot basis. Rs 10 crores have been earmarked as the Government’s contribution towards this project.

Tourism to form the backbone of Kerala

The tourism campaigns that were carried out immediately after the massive floods that had devastated Kerala, are to resume soon. As part of the revival mechanism, two tourism circuits have already been announced - the Malabar Literary Circuit connecting Thunjath Ezhuthachan memorial, Beypore, Thasrakku, the banks or River Bharathapuzha, Ponnani and Thrithala spread in Palakkad and Malappuram district, and the Bio diversity circuit connecting Kollam district’s Ashtamudi lake, Munroe island, Kottarakkara, Meenpidippara, Muttara Maruthimala, Jadayuppara, Thenmala and Achankovil.

Besides the existing allocation of Rs 100 crore for tourism marketing initiatives, another Rs 50 crores have been added through this budget. To attract tourists, Rs 5 crore has been earmarked to set up an Amphibian transport facility, to travel on land and in water. The first phase of the project would be commissioned in the Kollam, Kochi and Thalassery regions. Government has earmarked Rs 30 Crores as the State’s spending towards rejuvenation package to bring back to life the tourism enterprises which are on the verge of closing down due to the COVID crisis. Apart from these, many schemes have been announced for the protection and modernisation of the coastal belts of the State.