Kerala Finance Minister Dr. Thomas Isaac tabled the Kerala Budget 2019 in the Legislative Assembly. The budget is especially important considering it will contain the government’s proposals to rebuild Kerala after the devastating Kerala Floods of 2018. Stay with NewsClick for more analysis on the Kerala Budget 2019.
CPI(M) Central Committee member and Kerala’s Finance Minister, Dr. T.M. Thomas Isaac is presenting Kerala Budget 2019 at the Kerala Legislative Assembly now. This is the 10th Budget presented by the two-time Finance Minister Dr. T.M. Thomas Isaac. The budget presentation will begin at 9:00 AM. Kerala Budget 2019 will provide a clear picture about the projects the government will be implementing to rebuild Kerala after one most the most devastating floods the State has ever witnessed.
Earlier, Dr. Thomas Isaac said in a Facebook post that he had prepared each Budget with the perspective of strengthening and driving forward the discussions on Kerala’s development. The approach was not a mere presentation of expenditure allocation and allocations to the departments. “Kerala Budget 2019 too, will raise the debates on development to a new level,” he added.
The Finance Minister said that the growth rate estimated for the financial year 2018-2019 was not achieved as a result of the Kerala floods, and Goods and Services Tax implementation. In the coming financial year too, Kerala’s economy is expected to face a similar situation. The expected growth rate, therefore, will be 1.5% lesser than estimated. The budget will also take up the challenge of reducing the fiscal deficit and revenue deficit, but without reducing government expenses in various welfare schemes initiated by the Kerala Government after Left Democratic Front sworn into power.
Kerala Budget 2019 will have proposals to impose a 1% cess, in addition to GST, on all items. It is expected that all essential commodities which are under the 5% GST slab, will be exempted from the cess. However, a clear picture of this will be revealed only in the budget.
The debate on the Kerala Budget 2019 will begin on February 4 at Kerala Legislative Assembly. The Budget discussions will continue on 5 and 6. Discussions and voting on Vote on Account will be held on 7 February 2019.
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Kerala State RTC to ply only electric buses in the state capital
Continuing with the theme of sustainable development, the government is likely to focus majorly on electric transport. In a landmark announcement, all Kerala State Roadways Transport Corporation services in the capital, Thiruvananthapuram, will be electric. By 2022, the aim is to raise number of electric vehicles to 10 Lakh. There will be road tax concessions for electric vehicles. Gradually, autorickshaw permits will be allotted only to electric vehicles.
Kerala Automobiles to build electric autos
New factories will set up electric vehicles. Kerala Automobile has started building electric autos. Supplier factories for KSRTC could be asked to start factories in Kerala.
Kochi integrated water transport will be integrated with the Kochi metro
The Kochi integrated water transport will be integrated with the Kochi metro. A South-to-North parallel railway track - a greenfield track - at a distance of 515 km - has been announced and construction will be started in 2019-20. The journey from the capital in the south to Kasaragod can be completed in 4 hours at a speed of 150 km/hour. The work will be completed in 7 years
Get ready for the Kerala Boat League
The boat races of Kerala which are famous throughout the world will now be held for a three-month-long season. Nine top chundan vallams (long boats) from the Nehru Trophy to participate.
The legacy of the Spices Route
A travel route connecting key ports in Kerala that are part of the international spice trade is being planned. A cycle track along the coastal highway will boost the spices route.
Dutch technology to make coird boards
The government is making a major push to rejuvenate the coir industry. New Dutch technology will be used to make coir boards.
Govt. to bear expenses to bring back bodies of NRKs who pass away in West Asian countries
Kerala has a huge population in a number of countries abroad. The minister has announced that the Department of Non Resident Keralites Affairs will bear the expenses to bring back the bodies of NRKs who pass away in West Asian countries.
Kerala Bank is formed!
The Minister announces what he says what is perhaps the most significant announcement of the Kerala budget. A Kerala Bank will be set up. The RBI has given the go-ahead for that. The Kerala bank will be the biggest network in the State. It will be the first scheduled bank in India in the cooperative sector.
Kerala Bank will give strong support to enterprises in the agriculture sector
The Bank will give strong support to enterprises in the agriculture sector. Modern services to be made available in the bank (and hence for the customers of current cooperative banks)
Hunger-free Kerala
Alappuzha, Cherthala constituencies have seen pilot initiatives to ensure hunger-free Kerala.
25,000 women to get an income of Rs. 600 per day
Gender budgeting had been implemented from the very first budget, Dr. Isaac notes. In the 2019-20, this will be a total of 16.89%, up from 11% last year. Microenterprises will be set up in the fields of garments, chicken, coir, handicrafts, honey, herbal soaps, curry powder, dried fish, adivasi products, umbrella (maari kuda).
Gender Budgeting: 11% to 16.9% increase
200 small marketing centres will be set up for Kudumbashree. 2000 geriatric care providers will be trained, as will be women in the fields of construction, utility services and event management.
10,000 placements for Scheduled Castes & Tribes. 9.0% for SC sub-plan & 2.8% for ST sub-plan.
The Minister announces 10,000 placements for members of the Scheduled Castes and Scheduled Tribes. The SC sub-plan will be 9% and the ST sub-plan will be 2.83%, vital numbers at a time when the Centre’s policy on this has been in the opposite direction.
Houses for all
As part of the LIFE mission, houses for 21,000 will be completed by mid-May. As much as Rs. 1296 Crore will be allocated for the third phase of houses for homeless.
Public education for the win!
In the last two years, an additional 2.5 Lakh students have joined public schools. More than 90% of them came taking TC from private schools, the minister says, adding that there is no greater reward for the government’s efforts.
Rs. 170 crore has been allotted for infra development in schools which haven’t got KIIFB funding. 45,000 classrooms have been made hightech. Lab facilities of high school and higher secondary to be combined, which gives high school students better exposure to practical learning.
A Master plan is in place to raise academic standards. Two new approaches have been announced - There will be a shift from teacher training to teacher transformation and school-level workshops will be done for jobs training in higher secondary level.
Special schemes will be introduced to ensure increased academic standards in English, mathematics and social sciences.
Comprehensive Healthcare
The Ayushman Baharat Scheme has hit the States hard, Dr. Isaac notes. For a benefit of Rs. 5 Lakh, the premium must be Rs. 8000 premium, but the Centre is giving only Rs. 1200. The fiscal burden will fall on the States.
Kerala has India’s best network of PHCs. All PHCs are being turned into Family Health Centres, thus meeting the goals of the Astana declaration. All medical colleges will have oncology departments. 4217 new posts in healthcare have been created in the last three years.
The already existing RSBY and Karunya schemes are going to be integrated. The new Karunya Comprehensive Health Insurance Scheme will ensure healthcare protection for all families in Kerala.
Infrastructure upgrades: 2019-20 will witness Rs. 30k Crore worth of projects to be sanctioned by KIIFB
2019-20 will be the year when Rs. 30000 crore worth of projects sanctioned by the Kerala Infrastructure Investment Fund Board will go into implementation. Rs. 41326 crore worth of projects have been sanctioned by KIIFB so far.
Massive Support to Agriculture Sector
Rs. 2500 Crore will be allocated to rejuvenate agriculture. Rs. 167 Crore will be for food crops and Rs. 71 Crore for vegetables. Institute of Rural Management (Anand) experts will be tapped to manage vegetable cooperatives.
Rs. 45 Crore has been allotted for extension services and Rs. 10 Crore for spices. Rs. 20 Crore will be spent for crop insurance and Rs. 7.5 Crore will be assigned for contingency.
Rs. 120 Crore will be allotted for soil and water protection. Rs. 5 Crore to strengthen landslide-prone regions and Rs. 83 Crore for Kerala Agricultural University.
Rs. 29 Crore has been allotted for financial assistance to cooperatives and Rs. 150 Crore for fish farming.
Special package for traditional industries
Cashew sector
The Minister announces a special package for the cashew processing factories which have been shut down. Rs. 25 Crore of additional outlay has been announced. Dr. Isaac stresses the need to ensure that intermediaries are avoided.
Coir sector
Rs. 42 Crore has been announced for the coir industries
IT sector gets Rs. 574 crore
The budget has major proposals for the IT sector. Dr. Thomas Isaac announces that the total outlay for the IT sector in the budget is Rs. 574 crore. Rs. 84 crore has been assigned for various parks and Rs. 148 crore for the Kerala State IT Infrastructure Limited, which will be responsible for implementing the Kerala Fibre Optic Network.
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