Kerala Budget allots lion's share for roads

With enhanced welfare spending and no change in tax rates, Kerala finance minister TM Thomas Isaac today presented his sixth Budget apparently conscious of the approaching Assembly elections in the state.

The state’s tax income has increased to Rs 16,000 crore in 2010-11 from Rs 7,000 crore in 2005-06, while the total debt grew to Rs 78,327 crore in 2010-11 from Rs 45,929 crore in 2005-06. The Budget estimates a revenue deficit of Rs 6,019.44 crore with total revenue reciepts of Rs 38,546.89 crore and expenditure to the tune of Rs 44,566.33 crore. The overall deficit of the Budget will be Rs 730.67 crore.

 

Proposals
The government proposed to start five new ventures in the public sector and has earmarked Rs 65 crore for the purpose. However, at Rs 40,000 crore, the lion’s share of the allocation in the Budget 2011-12 has been made to the development of the state highways and other main roads. In addition, Rs 1,000 crore has been allocated for bypass development and Rs 420 crore for a new coastal highway stretching from Poovar in Thiruvananthapuram to Ponnani in Malappuram district.

The Budget proposes to raise this huge amount mainly through the proposed Islamic banking channel and plans to implement it through the Road Fund Board and the Kerala State Roads and Bridges Corporation.

The Budget has made special provisions for junction modernisation to avoid traffic blocks in five major cities, including the state capital. Under this, Thiruvananthapuram will get Rs 250 crore, Kochi Rs 202 crore, Kozhikode Rs 180 crore, Thrissur Rs 142 crore and Kollam Rs 120 crore. The Budget set aside Rs 94 crore for the development of the National Waterways and for inland water trasnport.

It also proposes to construct a new highway through the high ranges stretching from Kasargod in the north to Kollam in the south. Ten state highways with a total length of 320 km have been identified for development with a total allocation of Rs 1,920 crore. The local governments will get Rs 528 crore for development and maintenance of local roads, and 36 district roads with a length of 765 km will be widened with an investment of Rs 765 crore.

Welfare spending
On the welfare side, besides raising the minimum welfare pension to Rs 400, the finance minister has unveiled a new pension scheme for domestic aides and cooks in schools, a majority of whom are women.

The Budget also proposed measures to strengthen the social security net for below poverty line (BPL) sections, bringing four million families under a free insurance scheme. Seeking to insulate the poor from the impact of price rise, four million families would be provided rice at Rs 2 a kg.

Stepping up the state-subsidised public distribution network, 3,000 ration shops across the state would be made franchisees of the state Civil Supplies Corporation, through which a variety of food articles and basic provisions would be distributed at lower prices.

The Budget has earmarked Rs 100 crore for controlling the price rise of essential items. Household items worth Rs 300 in the open market would be distributed at a price tag of Rs 150 through ration outlets.

He also said that Kerala would have the highest rate of growth among the Indian states within next 2-3 years. The average growth rate of the state during last five years is 9 per cent.

The Budget also raised the support price for paddy to Rs 14 a kg which was Rs 7 in 2006-07. All the new-born babies in the state will be provided with an insurance cover of Rs 10,000. A sum of Rs 770 crore has been earmarked for the welfare of women,  Rs 2,296 crore for higher education and the health sector will get Rs 252 crore.

Tourism
Isaac announced a novel tourism initiative, the Spice Route in line with the Silk Route and earmarked Rs 5 crore for the commencement of the proejct. In all, Rs 102 crore has been set aside for the tourism sector, and Rs 102 crore will be provided for land acquisition for IT parks across the state.

The state will provide Rs 150 crore for the Phase-I implementation of Vizhinjam International seaport and Rs 920 crore for developing port facilities at Thankassery in Kollam district and Ponnani in Malappuram district. An amount of Rs 100 crore will be invested to implement the Sabarimala master plan and the first phase of the plan will be completed by the next Makarajyothi season.

The construction of the Kannur International Airport would be completed within two years and Rs 10 crore has been allotted for the basic infrastructure development of the terminal.