Despite wide expectations, the social security pension received no increase but Finance Minister KN Balagopal, when presenting the budget for the financial year 2023-24, assured that the financial constraints would not impact the schemes of social welfare from the leftist government.
He did not chew the allowances in the health and education sectors amid a cash crunch which received an outlay of Rs 2,828.33 crore and Rs 1,773.09 crore respectively.
The FM said it was proposed to levy a social security levy on foreign liquor made in India (IMFL) and on the sale of petrol and diesel as the commitment to continue to protect the decent lives of diapers vulnerable in society requires supplementing financial resources.
“It is proposed to levy a Social Security Cess at the rate of Rs 20 for each bottle of IMFL having an MRP between Rs 500 and Rs 999 and at the rate of Rs 40 per bottle of IMFL having an MRP above Rs 1 000,” Balagopal explained.
An additional income of Rs 400 crore is expected from this, he said.
It is proposed to provide another boost to the Social Security Seed Fund by bringing the Social Security Cess on the sale of petrol and diesel at the rate of Rs two per litre, he said. he adds.
“This is expected to bring additional revenue of Rs 750 crore to the Social Security Seed Fund,” he said.
The current fair value of the land would be increased by 20% to bridge the gap between market value and fair value, the FM said.
The one-time tax on newly purchased motorbikes with a purchase value of up to Rs 2 lakh is increased by 2%, he said, adding that an additional income of Rs 92 crore is expected from this.
However, a single tax on electric taxis and tourist electric taxis has been reduced to 5 percent of the purchase value to minimize air pollution and promote public transport, the minister added.
Balagopal, in its budget, allocated Rs 100 crore for social protection programs and set aside Rs 2,000 crore to combat rising prices, in addition to announcing a series of initiatives for the infrastructure sector and of higher education.
“An amount of Rs 2,000 crore is planned for 2023-2024 to continue vigorous interventions in the market, given that the threat of inflation has not completely dissipated,” the FM said.
Starting the budget speech on a positive note, Balagopal said the southern state bravely overcame the challenges of COVID and finally got back on the path of growth and prosperity.
Although the state’s economy is facing challenges due to the Centre’s financial policies and its decision to impose cuts in its borrowing limit, Kerala is not in a debt trap, did he declare.
The Congress-led UDF slammed Kerala’s budget in protest at the proposed tax on petrol, diesel and alcohol. He accused the left-wing government of looting people.
“The budget hides the critical financial situation facing the state government and the proposals amount to looting the people. The decision to impose a tax on alcohol will lead more people to turn to drugs. The budget was presented without doing adequate studies,” the chief said. of the opposition VD Satheesan said.
He said that when the state faces inflation, rising gasoline and diesel prices will negatively affect the market.
“The imposition of a tax on petrol and diesel comes at a time when we are battling soaring fuel prices. This will drive up the prices of essential commodities affecting the common man,” he said. said Satheesan.
In his budget speech, Balagopal accused the Center of making changes to fiscal federalism, saying it went against the spirit of the constitution.
“Centralization of power and contempt for states, especially Kerala, has increased unprecedentedly,” the minister said.
He alleged that Kerala was also sidelined in the allocation of centrally sponsored programs.
“Can someone who engages with the people of Kerala justify this situation? On which side are those who celebrate this contempt? asked the minister.
Slamming the Centre, he said, following the cessation of GST compensation, there was a shortfall of around Rs 7,000 crore in the current financial year.
“Due to the policy of the Union Government treating the public account as a liability, there is a loss of revenue of around Rs 10,000 crore per annum,” the minister said.
Balagoapl said that during the tenure of the Tenth Finance Committee, Kerala’s share was 3.875% of the divisible pool to be apportioned among the states.
“By the time of the Fifteenth Finance Committee, it had fallen to 1.925 percent. Through this, the Union government has reduced Kerala’s revenue by tens of thousands of crores,” he said.
He also said that there was a revenue shortfall of around Rs 6,700 crore due to the reduction of revenue gap grant by the Union government.
Referring to the financial crisis in developed countries like Britain and neighboring Sri Lanka and Pakistan, Balagopal said this particular situation can only be survived by carefully taking every step forward.
“Out of pride that Kerala is able to move forward with alternative social welfare policies despite this global scenario,” Balagopal said, and urged lawmakers to put aside all our differences beyond politics. parties and to remain united for the State.
