Chandy scripts a sop opera: Commercial plan for coconut toddy, special fund for Gulf returnees, loan dole for farmers & 60 retirement age for new govt recruits
Floating solar panels, commercial plan for coconut toddy, agri-malls and natural gas crematoriums are some of the plans in the 32 programmes that the Oommen Chandy government listed in Kerala’s budget on Friday. To keep real estate speculators off from state, the Chandy government has announced a Singapore-modelled fine on the speculator selling a piece of property within three months of buying it.
“The state posted 9.51% growth rate in GSDP in 2011-2012 and now targets double-digit growth within two years,” said finance minister KM Mani, while presenting his 11th budget.
The most crucial and self-corrective reform is the proposal to set up a mechanism to ensure the effective implementation of all projects announced in the budget. This would make team leaders accountable and ensure quarterly targets don’t slip into mere budgetary announcements as in the past. “Infrastructure projects announced in the previous budget, like three coconut bio- parks, will get an on-shelf continuity treatment,” said CP John, member, state planning board.
With an unwavering eye on the Lok Sabha polls round the corner, the Congress-led UDF Government has escalated the whole range of social security pensions from widow pensions to unemployment doles. The retirement age of new government employees have been reset to 60 from the current 56 . Interest on educational loans has been trimmed.
Addressing the Gulf diaspora, totalling about three million and who send about Rs 55,000 crore in remittances to Kerala, the budget proposed a special fund to support those on reverse-migration. “Since the job scenario in West Asia is changing, the returnees need to have an alternative homebound plan. Once they are back, the state-run KSFE will facilitate a loan of an amount equal to that in their account at 3% interest rate to help them start a viable business,? the minister said.
Mani, who is also the Supremo of Kerala Congress (M) party which represents the farmer pressure groups in Kerala, has lavished carrots for farmers. He has set apart R50 crore for writing off the interest on small farmers, announcing an interest-free loan scheme for those holding below one hectare of land through cooperatives. He also came out with a risk insurance plan on farm loans guaranteeing that in the event of the farmer?s death, the loan need not be repaid. GST on a slew of consumer goods like luxury cars, have been raised from 13.5% to 14.5%. The state plans to garner Rs 650 crore through this move. While the tax hike on cigarettes from 15% to 20% is counted on to bring in R120 crore, jacking up tax on foreign liqour from 100% to 105% is anticipated to garner an additonal Rs 250 crore.
Taxes and fees have been plied with double-edged dexterity. For instance, the stamp duty on land transactions has been downpegged to encourage tax compliance. But to fend off land sharks, the state will insist that anyone selling land within three months of buying it will have to pay double the registration charges paid the first time. Rice and allied products have been spared from tax. VAT on cardamom auctions has been slashed from 5% to 2%. At the end of the day, the budget notches ARM ( additonal resource mobilisation) to the tune of R120 crore.
Factoring in revenue receipt of Rs 58,057.88 crore and revenue expenditure of Rs 60,327.85 crore, public debt servicing, concessions and waivers, the budget anticipates a deficit of R526.54 crore.