Thiruvananthapuram: The first budget of the second Pinarayi government will be presented by finance minister K N Balagopal in the state assembly on Friday. Given the special context as it is a revised budget, it could be the shortest budget speech ever. Though the previous Finance minister Thomas Isaac had presented a full Budget for 2021-22 fiscal on January 15, the House had only passed the vote-on-account for the initial four months of the fiscal as the period of that government was reaching an end.
Though, given the second wave circumstances, there would be a significant change in the priority and budget allocation for Covid. The last budget aimed to strengthen the state’s economy rendered static by the pandemic. With the prevailing second wave, the state has gone under lockdown once again. The updated budget will designate a larger part to the health sector to manage.
The Covid third surge is likely to hit in October owing to which, a higher allocation for Covid relief is considered vital. It would also be important to proceed with giving welfare benefits to people who have lost their livelihoods to the pandemic. The budget is also foreseen to address actions to restore the economy. The Finance Minister had indicated it is necessary to provide people with money to hold sales moving. The modifications to the Budget will show and support goals envisaged by the manifesto. LDF had put forth 900 promises to be performed in 5 years. The updated Budget will address projects that would be worked out during this year.
As India goes through a devastating Covid-19 surge that has started lockdowns in various states including Kerala, the focus is anticipated to be on allocation to deal with the pandemic. The third wave of Covid is expected to appear in October, demanding a larger budget for Covid relief. It would also be necessary to continue assisting persons who have lost their jobs as a result of the pandemic. The budget is expected to include steps to support the economy’s recovery. According to reports, the Finance Minister had earlier mentioned that providing people with money is required to keep sales rolling.
Changes
Local media reports state that no significant changes will be executed to the budget prepared by Thomas Isaac, apart from additional projects, such as plans to implement an extreme poverty eradication policy that will be set.
Vaccines
The statement of the Covid vaccine for free was repeated in the government’s policy announcement. The government is aiming for 6.6 percent economic growth this year.CM Pinarayi Vijayan has frequently emphasized the importance of Covid vaccines to help curb the pandemic. The Chief Minister had written to his counterparts in all non-BJP ruled states and urged them to make a “united effort” to ask the Centre to procure Covid-19 vaccines and give them free of cost. The letter was written to the Chief Ministers of 11 states such as Tamil Nadu, Telangana, Andhra Pradesh, Odisha, Chhattisgarh, West Bengal, Jharkhand, Delhi, Punjab, Rajasthan, and Maharashtra.
Challenges
The most significant hurdle facing Finance Minister KN Balagopal, who is presenting the budget, is the deficiency of revenue after the lockdown. The state’s chief sources of income, such as the lottery and liquor, have been postponed. There is no GST revenue as the industrial establishments are also shut. From June 7 to 9, there will be a general debate on the new budget. The administration will also offer a new three-month vote on accounts, considering that the updated budget will only be enacted after a thorough discussion in the next sitting.
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Meanwhile, the assembly and its premises have been constrained to strict Covid-19 procedures. MLAs have been asked to wear double mask/N95 masks throughout the session, and seats have been rearranged to assure correct social distancing.
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