On February 5, 2024, the Finance Minister of Kerala Kalanjoor Narayana Panicker Balagopal (K.N. Balagopa) has presented a deficit budget for FY2024-2025 at the State Legislative Assembly in Thiruvananthapuram, Kerala.
- The budget estimates for 2024-25 includes revenue receipts of Rs 1,38,655.16 crore, revenue expenditure of Rs 1,66,501.21 crore and capital expenditure of Rs 15,596 crore.
Points to note:
i.For the first time, Kerala’s budget included a dedicated ‘Environment Budget’ highlighting Kerala’s commitment to environmental conservation and sustainable development.
ii.According to the Economic Review report presented in the Kerala Assembly on 2nd February 2024, Kerala’s economy recorded “steady growth” in 2022-23 with the Gross State Domestic Product (GSDP) recording a 6.6% growth at constant prices.
iii.The government aims to attract an investment of Rs 3 lakh crore to the state in the upcoming 3 years.
Note: In 2023, Kerala became the first state in India to adopt a water budget to address water scarcity in the summer and ensure equitable water distribution.
State’s Financial Indicators:
i.Fiscal deficit is pegged at Rs 44,528.96 crore (3.4% of the GSDP) and revenue deficit at Rs 24,846.05 crore.
ii.Kerala’s own tax revenue is projected to grow by Rs 7,845.21 crore and non-tax revenue, by Rs 1,503.41 crore over the 2023-24 revised estimates.
Key points:
i.Scrapping Policy: Kerala is set to introduce a streamlined salvage and scrapping policy to generate revenue through disposal of unusable assets. This is expected to raise around Rs 200 crores.
ii.Excise: The Abkari law permits levying a gallonage fee of up to Rs 30 per liter on the sale of Indian-made foreign liquor. The fees has been set at Rs 10 per liter. This will generate an additional Rs 200 crores.
iii.NoRKA: Rs 143.81 crore has been allocated for activities of NoRKA (Non-Resident Keralite’s Affairs). This includes
- Rs 25 crore for NoRKA Department Project for Return Emigrants (NDPREM), the scheme to ensure sustainable livelihood by promoting self-employment ventures.
- Rs 44 crore for Rehabilitation, Reintegration and Co-ordination Scheme for returned pravasis.
Scheduled Tribes Development: Rs 859.50 crore has been allocated for Scheduled Tribe Development and the provision for the schemes to offer assistance to ST students is increased to Rs 9.25 crore.
Education: Rs 1032.62 crore has been allocated for General Education Sector amd Rs 456.71 crore for the higher education sector.
Labour: Rs 33 crore has been set apart for various action plans of Kerala Academy for Skills Excellence (KASE) setup to implement skill development programmes in Industrial Training Department.
Eco-tourism Authority: Kerala Forest Eco-tourism Development Authority will be established to effectively utilize the prospects of eco-tourism.
Kudumbasree: Kudumbasree, the poverty eradication mission of Kerala aim to enhance women empowerment under the ageis of Local Self Government Department has completed 25 years. Rs 265 crore is earmarked for Kudumbasree in the year 2024-25.
Safari Park:
A Safari park spread across 300 acres will be established at Nadukani in Thaliparambu constituency. Rs 2 crore is earmarked for initial expenses.
A Tiger Safari Park spread across 120 hectors of land will established at Mudukad in Peruvannamoozhi Range of Kozhikode Forest Division.
Sector wise allocation:
- Rs 464.44 crore for the labor sector;
- Rs 127.39 crore for the sports sector;
- Rs 170.49 crore for the culture sector;
- Rs 351.41 crore for the tourism sector;
- Rs 107.64 crore for the coir sector;
- Rs 1829.13 crore for the industries sector;
- Rs 134.42 crore for the co-operative sector
- Rs 1698 crore for the agriculture sector.
- Rs 553.31 crore for social security and welfare sector.
Infrastructure development:
i.Rs 39.20 crore is allocated for the comprehensive infrastructure development of Azhikkal, Beypore, Kollam, Alappuzha and Ponnani ports.
- Rs 9.65 crore for land acquisition, rehabilitation, breakwater construction, utility charges, and consultancy-project management of greenfield Malabar International Port & SEZ Ltd (formerly known as Azhikkal Ports Ltd).
ii.Rs 128.54 crore has been allocated for activities of Kerala State Road Transport Corporation (KSRTC).
iii.Rs 200 crore has been allocated for the for the development of Kochi-Bengaluru Industrial Corridor.
- National Industrial Corridor Development and Implementation Trust (NICDIT) has approved “Kochi-Palakkad High-Tech Industrial Corridor” under Kochi-Bengaluru Industrial Corridor.
iv.A large scale pre-production center to develop Graphene based products at Ottappalam, will be established in co-operation with Carborundum Universal Limited. The plant will be developed at a cost of Rs 260 crore.
Other Noted allocation:
- Rs 119.91 crore for Kerala State Information Technology Infrastructure Ltd and Rs 90.5 crore for Kerala Startup Mission.
- Increase of Rs 10 in support price for rubber under the rubber price stabilization fund incentive scheme.
- Rs 127.5 crore for Kerala State Industrial Development Corporation.
- Rs 3.5 crore for using solar energy in tribal settlements.
- Rs 588 crore for irrigation projects.
- Rs 252.6 crore for special local development packages and Rs 75 crore for coordination works.
- Rs 1132 crore for the LIFE (Livelihood Inclusion Financial Empowerment) housing project.
- Rs 227.12 crore for the fisheries sector. There will be establishment of a new fishing harbor at Pozhiyoor with an Rs 5 crore.
- Rs109.25 crore for dairy development.
- Rs 40 crore for the Punargeham project, which aims at permanent rehabilitation of families living in the coastline of Kerala.
- Rs 83.99 crore for soil and water conservation programs.
- Rs 50 crore for developing facilities for gatherings in various tourist destinations.
- Rs 10 crore to organize Keraleeyam in 2024-25.
Key Points:
i.Kerala will organization of an international AI (Artificial Intelligence) conclave in Kochi with IBM in July 2024.
ii.It aims to eradicate extreme poverty in Kerala by November 2025.
iii.There will be formation of a task force to engage expatriate academic experts for higher education enhancement, with regional conclaves in Europe, USA, Gulf countries, and Singapore.
iv.Kerala is also hosting a Higher Education Transformation Initiative Global Conclave in Kerala in August 2024.
v.Kerala Government also plans to adopt the Special Development Zones model from China in the 1970s.
vi.Vizhinjam International Seaport Terminal scheduled to become operational in May 2024.
Recent Related News:
i.Kerala has become the first state in India to have hallmarking centers in all of its 14 districts. This was achieved after the inauguration of a hallmarking center in Adimali, Idukki district, Kerala.
ii.The Kasaragod district of Kerala became the first district in India to officially designate its official tree, flower, bird and species showcasing its rich biodiversity and natural heritage.
About Kerala:
Chief Minister– Pinarayi Vijayan
Governor– Arif Mohammed Khan
National Parks– Eravikulam National Park, Silent Valley National Park, Pampadum Shola National Park
