Kerala Finance Minister Thomas Issac has presented the budget 2020-21 before the legislative assembly. The cost of the budget was pegged at Rs 1.42 lakh crore, with an aim to reduce the fiscal deficit by 1 per cent and revenue deficit by 3.3 per cent.
Finance minster starts with reference to CAA protests:
Kerala Finance Minister Thomas Isaac stands to present the state budget for the year 2020-21. He begins by referring to the protests against the new citizenship law. He says the future of the country lies in the hands of the thousands of young men and women who held torches and banners as they agitated against the controversial legislation. He also speaks about the brief united protest that was held by the UDF and LDF coalitions in Kerala against CAA.
Promises to be another “literary” budget :
It’s no secret that Thomas Isaac, an economist, is also an avid literature geek. All of his budgets, presented over the years, have been rich with references to the literary giants of Kerala and abroad. This budget is no exception. In the first few minutes itself, we’ve listened to his references to the poems and prose of writers like Benyamin and Prabha Varma.
All welfare pensions to be hiked by Rs 100:
Kerala Finance Minister Thomas Isaac boasts that the LDF government in the last four years has spent double the money the previous UDF government in its five years spent on welfare pensions. He makes the big announcement that all welfare pensions like old age, widow etc have been hiked by Rs 100. The beneficiaries will now receive Rs 1,300 per month.
Allocation for key sectors:
Kerala’s Finance Minister has allocated Rs 1,000 crore for building rural roads, Rs 90 crore for the welfare of expatriates and Rs 1,000 crore for the state’s coastal community. It’s not clear if there are specific schemes or projects this money would go to. We’ll have to look at the fine print for such details. Also, we’ll have to go back to the last budget to see if the allocations have been slashed for these key sectors.
Issac falls back on KIIFB:
The Kerala Infrastructure Investment Fund Board (KIIFB), the LDF government’s flagship institution formed to mobilise funds for infrastructure development, is once again Isaac’s favourite vehicle to get key projects going. He cites all the major projects the state has undertaken in the past year that have been sanctioned by KIIFB funds. He says all the projects sanctioned by KIIFB have already begun. The challenge before us is how to complete these projects in a time-bound manner without cost-overruns, he adds.
What are some of these KIIFB projects?
The FM announces that Kerala Infrastructure Investment Fund Board (KIIFB) will spend upto Rs 20,000 crore for infra projects in the state. A total of 20 flyovers, 74 bridges and 44 stadiums will be built. Drinking water projects at a cost of Rs 4,383 crores will be implemented with the help of KIIFB as well.
Silver Line project gets special mention:
The semi high-speed train project, named Silver Line, linking the northern and southern end points of Kerala is one of the government’s flagship projects. Finance Minister Thomas Isaac says while the aerial surveys have been completed, land acquisition will begin shortly after the nod from the Railways. The project will not only boost the state’s transportation sector but also provide jobs to thousands during the construction and implementation phases. Integrated townships will also be built along the corridor. The project will be funded with the help of international lending agencies.
FM mentions Kochi and water metro project:
While presenting the Kerala budget, the FM cites developments in the Kochi Metro project. An extension from the JLN stadium to the IT hub of Kakkanad is on the anvil. Also, the Water Metro project, linking islands to the city, will take off at the end of 2020.
Kerala Bank a reality, says Thomas Issac:
FM Thomas Isaac has flagged the formation of Kerala Bank by merging all the district cooperative banks and making the banking system easier and transparent for the people of the state.
CFL, filament bulbs to be banned from November 2020:
Kerala Finance Minister Thomas Isaac announces that the manufacturing of CFL and filament bulbs will be stopped and the use of such bulbs will be banned from November this year. He said the state needs to move on to LED bulbs.
1,000 hotels by Kudumbashree soon to provide meals at Rs 25:
In the last budget, we had envisaged a scheme to make Kerala hunger-free. Under the leadership of Kudumbashree, we will start from April onwards 1,000 restaurants which will provide meals at Rs 25 each. We will also declare the areas of Cherthala and Ambalapuzha hunger-free. With the help of sponsors, we have to see whether we can provide meals at Re 1 at select hotels to those who cannot afford to buy food.
Housing allocation scheme: Rs. 10 crore allocated to “Nirbhaya” homes:
In the third phase of LIFE, we will provide 40,000 homes to fishermen families, says FM Thomas Isaac. Work on 10 apartment complexes has begun. We will have she-lodges in every district for travelling single women. Rs 10 crore has been allocated for ‘Nirbhaya homes’, though it’s not clear whom these homes are aimed at. Again, we’ll have to look at the fine-print to know more.
Rupees 323 crore allocated for tourism sector:
One of the key sectors providing revenues for the state government with more potential in the future is the tourism industry. The FM has allocated Rs 323 crore for the sector. He underlines that the Muziris heritage project, in its entirety, will take off in 2021. Also, Alappuzha, the hometown of the finance minister, will be developed as a heritage town.
Rupees 2400 crore rupees allocated for Kuttanad package:
Rs 2,400 crore has been allocated for the Kuttanad region in Alappuzha. As many might know, it was one of the worst-affected areas in the 2018 floods. It’s also one of the few places in the world where farming is done below sea-level. The package is likely to address health, education and farming concerns of the people. Minutes before this, FM Thomas Isaac had announced that Alappuzha, his hometown, would be developed as a heritage town.
Here are the FM’s agro-promises:
Thomas Isaac says 75 coconut saplings will be distributed in every ward and more value-added products will be derived from coconut. Rs 3 crore will be allocated for pineapple farming in Vazhakkulam. The FM talks of creating villages that are free of barren areas. We have 26 villages currently that are completely non-barren. In the next financial year, we will have integrated rice and rubber parks in the state.
All street lights to be changed into LED:
The Finance Minister announces that all streetlights across Kerala will be changed to LED. That’s a big and ambitious announcement, I would say. Also, this is in line with the government’s decision to ban filament and CFL bulbs from November 2020. It’s seen as an important step towards energy conservation.
493 crore allocated for higher education scheme:
Expansion of laboratories in colleges, 1,000 new appointments in public colleges, history museum at the CMS college in Kottayam and 60 new courses are among the key announcements in the allocation of Rs 493 crore for the higher education sector in the state.
Champions Boat League a huge success, says FM:
One of his pet projects, FM Thomas Isaac says the Champions Boat League (CBL), an IPL-model snake-boat race competition, has proved to be a big success. The inaugural edition was held last year and ace former cricketer Sachin Tendulkar was the chief guest. It seems to have bolstered the revenues and earnings of the local snake boat clubs in Alappuzha, Kollam, Kottayam and Ernakulam districts and brought international audiences to it as well. The FM allocates Rs 20 crore for the CBL.
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