Thomas Joseph K.
Kerala Finance Minister K.N. Balagopal presented a friendly Budget on Monday by not slapping any fresh taxes.
The announcement of ₹1,032 crore for public education will provide a much-needed fillip to the public education sector that has been seeing a revival during the past few years. It also provides an impetus to the overarching social sector development theme which has been the game-changer for Kerala for an even longer time. It is the right step in the right direction to take the world renowned ‘Kerala Model’ forward.
A model school in each district will work as a key factor in transforming the State’s education sector. The budgetary allocation of ₹155 crore to provide free uniform to schoolchildren is another announcement that needs appreciation. Above all, the allocation of ₹456 crore for paving the way for people’s contribution to strengthening the State’s higher education sector is another welcome announcement in the Budget. But we may have to see the final blueprint to understand how the idea will transform into solid policy action.
Additional funds for ‘Operation Breakthrough’ announced in the Budget to preclude recurrence of flash floods in Kochi and its adjoining localities will go a long way in supporting the vital infrastructure in the city, which incidentally is also the commercial hub of the State. The city has been battered by flash floods emanating from extreme climate events in recent times leading to massive economic losses.
Micro, small and medium enterprise or MSMEs, which form a sizable chunk of the State’s industrial population, have got a fair deal in the Budget with an allocation of ₹216 crore. This is expected to catalyse the sector, which employs thousands of people in the State. Cashew sector, one of the key export-oriented industries and a major source of employment for women workers, got a special allocation of ₹53 crore, which is commendable.
The Finance Minister also paid much-needed attention to the tourism sector by announcing incentives in areas such as eco-tourism. Also, the call for strengthening the tourism sector, which is one of the key revenue earning industries for the ecologically sensitive State, by ensuring increased people’s participation is another welcome move.
Such increased participation of people will make the hospitality sector more vibrant going forward. New themes such as zoological park and tiger safari park will add new colour and shade to the hospitality sector in the long run, moving in tandem with the Union Budget.
The Finance Minister has announced the development of sandalwood cultivation in the State, but how it will be achieved remains to be seen. Steps to protect people facing soil erosion in the coastal areas is another progressive move, especially when the State is facing high incidence of extreme climate events.
Even though the government has proposed an increase in stamp duty for lease agreements, overall, the Finance Minister has done a fine balancing act by sparing people from new taxes while stepping up efforts to enhance the economic activities by announcing a bevy of measures to increase people’s participation in key economic activities. To me, the Kerala Budget has ticked most of the right boxes in the current situation.
(The writer is Executive Vice President & Chief Business Officer, South Indian Bank)
