Kerala Finance Minister (FM) KN Balagopal presented to the Legislative Assembly the budget for fiscal year 2023–24 (FY24), the second full budget of the Communist Party of India (Marxist) government led by Pinarayi Vijayan, the Chief Minister (CM) of Kerala.
- The Union Government has reduced the state’s borrowing limit by Rs. 2700 crore in FY24.
Important Budgetary Provisions for Kerala for 2023–24
i.The Kerala government has set aside Rs. 100 crore for welfare programmes and Rs. 2,000 crore to combat price increases, in addition to a plethora of initiatives in the infrastructure and higher education sectors.
ii.The Kerala Infrastructure Investment Fund Board (KIIFB) has allotted Rs. 1,000 crore for the development of the Vizhinjam ring road as an industrial corridor.
- The region surrounding the under-construction Vizhinjam port will be transformed into a vast industrial and commercial hub.
iii.An amount of Rs. 80 crore is set aside to alleviate extreme poverty.
iv.The state budget allocated a total of Rs. 600 crore for rubber subsidies.
v.To provide more emphasis to the Research and Development (R&D) sector, a separate budget for R&D would be presented.
vi.In order to promote domestic production, the Kerala government has also announced the ambitious “Make in Kerala” initiative.
- During the project duration, Rs. 1000 crore would be allocated for “Make in Kerala,” with an initial investment of Rs. 100 crore this fiscal.
- Rs. 100 crore for the “Make in Kerala” project, which focuses on agriculture start-ups in particular.
vii.For the development of waterways, the Kerala government has set aside Rs. 300 crore.
viii.A budget of Rs. 131 crore is given to the Kerala State Road Transport Corporation (KSRTC) for the development of 1933 km of highways in Kerala.
ix.In the state budget, Kerala Finance Minister announced a total allocation of Rs. 2,828.33 crore for the medical sector, with Rs. 194.32 crore set aside for the “Integrated Child Development Service” (ICDS) scheme.
Other Significant Announcements Made in The Kerala Budget 2023–24:
i.Social Security Cess of Rs. 2 per litre on the sale of petrol and diesel
ii.A 2% increase in the one-time tax on newly purchased motorcycles with a purchase value up to Rs. 2 lakh.
iii.One-time cess on newly registered motor vehicles have been raised.
iv.A one-time tax on newly purchased motor vehicles and private service vehicles for personal usage was increased.
v.Electric motorcabs and electric tourist motorcabs are subject to a one-time tax of 5% of the purchase value.
vi.There will be a 20% increase in the fair value of the land.
vi.The West Coast Canal Economic Corridor would receive Rs. 300 crore.
vii.Rs. 300 crore has been set aside for urban development
viii.The Clean Ocean Program received an allocation for Rs. 5 crore.
ix.In order to raise the standards of the state’s six municipal corporations, a total of Rs. 100 crore is allocated.
x.A total of Rs. 100 crore has been allocated to various welfare and development projects.
xi.Rs. 50 crore for the development of tourism corridors.
xii.The “work near home” scheme has been given a Rs. 50 crore budget.
xiii.New nursing schools will open in Idukki and Wayanad for a total of Rs. 20 crore.
xiv.Rs. 10 crore for the establishment of Energy Park
xv.A total of Rs. 20 crore has been allotted for the establishment of green hydrogen hubs in Kochi and Thiruvananthapuram.
xvi.Additionally, the consortium for electric vehicles (EVs) has been granted Rs. 25 crore.
xvii.A total of Rs. 10 crore has been set up for the India Innovation Centre for Graphene, a joint venture of the Central and State governments.
xviii.A permanent venue for an international trade fair will be established in Thiruvananthapuram.
xix.National highway construction projects will be completed over the next three years.
xx.The digital science park is set to debut in May 2023.
Recent Related News:
i.On 10th December 2022, Pinarayi Vijayan, Chief Minister (CM) of Kerala, declared Kerala Seed Farm in Aluva, Ernakulam district, Kerala, as the 1st Carbon Neutral Farm in India.
ii.The farm, located near Thuruthu, Aluva, produced 43 tonnes of carbon in 2021, although its total procurement was 213 tonnes.
About Kerala:
Chief Minister – Pinarayi Vijayan
Governor – Arif Mohammed Khan
National Parks – Pampadum Shola National Park; Mathikettan Shola National Park
Wildlife Sanctuaries (WLS) – Peppara WLS; Shendurney WLS
