Rs 5,000 crore on tourism, hike in alcohol prices: Kerala tables fiscal Budget

A cash-ridden Kerala government on Monday tabled its Budget for the fiscal year 2024-25 in the state Assembly, highlighting the financial constraints it is facing.

Kerala Finance Minister KN Balagopal presented the fourth budget of the second Pinarayi Vijayan-led government. His speech began by directing criticism towards the Centre, which he held responsible for pushing the state to the brink of the "worst financial crisis in its history". He also mentioned a China-inspired development zone which would be implemented in Vizhinjam.

He said, "Kerala cannot remain a mute spectator to the hostile approach of the central government, which is pushing the state towards the worst financial crisis in its history. Instead, the state should strive forward with the strong sentiment of “Thakarilla Keralam, Thalarilla Keralam, Thakarkkanavilla Keralathe” (“Kerala will not be shattered, Kerala will not tire, Kerala cannot be destroyed”).

KN Balagopal further said in the Kerala Assembly, "The government will provide leadership in advancing our achievements and progress while ensuring that all Keralites stand united in building a Navakeralam (New Kerala)."

One of the key announcements was the hike in prices of alcohol in the state, along with a significant boost to the tourism sector. The state finance minister also said that the Vizhinjam port is set to be operational from May 2024.

"Kerala shall adopt the idea of development zones conceived in China during the late 1970s. The government intends to create such Special Development Zones (SDZ) in order to utilise the entire developmental potential of Vizhinjam. Special Development Zones will be created in partnership with the private sector by attracting investment from institutions and individuals including non-resident Keralites," the state minister said.

The state plans to proceed with the K-Rail project and the Kozhikode and Thiruvananthapuram Light Metro projects, KN Balagopal announced.

KERALA BUDGET KEY HIGHLIGHTS

• The Budget announcement stated that the price of liquor in Kerala is set to increase. The excise duty will be raised by Rs 10 per litre.
• Finance Minister KN Balagopal announced an increase in the electricity duty for those who produce their electricity, adding 15 paise per unit (previously 1.12 paise). An additional income of Rs 24 crore is expected through this adjustment.
• A total of Rs 1,000 crore has been allocated for implementing development projects proposed during the public outreach programme, Navakeralam Sadass.
• The Minimum Support Price (MSP) for rubber has been increased by Rs 10, now standing at Rs 180.
• The state budget did not increase the welfare pension this time. The Finance Minister stated that steps would be taken to clear pension dues in the next financial year. The minister criticised the central government's stance, which, according to him, caused a delay in pension distribution for months.
• A sum of Rs 5,000 crore has been allocated for development in the tourism sector.
• Rs 1,032 crore has been allotted for the public education sector.
• The government has devised a plan for government hospitals to receive assistance from the people. A government remittance account for those who are willing to donate to hospitals will be arranged.

"This (arrangement of donation to government-run hospitals) may be viewed as a cross-subsidy," he said.