KERALA STATE BUDGET 2021-22
KEY HIGHLIGHTS OF BUDGET 2021-22
8,00,000
jobs in 2021-22
Laptops
for all
Six-Point programme for promoting startups
Champions boat league to resume
Poverty alleviation
Agriculture, Fisheries and Coastal development
ASHA workers allowance hiked
Will not allow lotteries from other states to exploit
citizens
Kerala’s finance minister Dr. Thomas
Isaac presented the Left Democratic Front (LDF) government’s final budget for
this term on Friday, 15 January 2021. The budget speech was considered
especially crucial considering the need to counter the economic impact of the
pandemic. It was also significant considering the upcoming elections in the
State this year.
The Finance Minister emphasised the goal of transforming Kerala into a
knowledge-based society, "with strides in modern employment opportunities
and industrial growth while consolidating the state's achievements in the
social sector." Employment was a key focus area throughout his speech with
targeted schemes for various sections of the population. Among the major
announcements were ensuring laptops for all families, an Rs.100-increase in
social welfare pensions, more jobs in the education section and more
institutions, and a Rs. 1000-increase in the allowance given to ASHA
workers.
At a time when the issue of the Minimum Support Price has become a key site
of struggle, the minister announced that Kerala will provide the highest MSP in
the country for paddy farmers at Rs. 28/kg. Kerala, which is also the only
State into the country to offer an MSP for vegetables is looking at
self-sufficiency in vegetable production too in 2-3 years.
The minister also announced that an additional 10 kg of rice will be
provided at Rs. 15 to 50 lakh families that have blue and white ration
cards.
A key highlight of Dr. Thomas Isaac’s speech was the success of the public
sector in Kerala. PSUs and the public health and education sectors have seen
major revivals over the past five years, according to the minister.
According to the Minister, the total receipts for 2021-22 are estimated to
be Rs. 1,59,427.24 crore. The total budgeted expenditure for 2021-22 is Rs.
1,59,427.21 crore. The revenue deficit is estimated to be 1.93%, and the fiscal deficit
is estimated to be 3.5%.
The Economic Review that was released on Thursday highlighted the extent of
challenges, especially the cumulative impact of a series of disasters including
Cyclone Ockhi, two rounds of flooding in 2018 and 2019, and the Nipah and
Coronavirus infections.
Just as in the case of the Indian economy, the economic slowdown affected
Kerala as well. The state's economic growth rate in 2019-20 was lower compared
to 2018-19, which adversely impacted tax revenues as well. The Covid-19
pandemic has meant a further contraction in economic activity across the world,
and Kerala has been no exception. Hence the final revenue receipts in 2020-21
would be lower than last year's budget estimates.
But the Kerala Budget 2021-22 projects that revenue receipts would grow
significantly in the coming year as the world, the country, and the state
recovers from the pandemic crisis, enabling a significant rise in the state's
expenditure such as those on capital investments and welfare spending.
The Economic Review review noted that “the average rate of growth for the
years 2016-17 to 2019-20 (5.4 percent) was higher than the average rate of
growth for the previous four years, 2012-13 to 2015-16 (4.8 percent).”
The sixth Budget of the Government of Mr.Pinarayi Vijayan is opening a new path
before Kerala. Like in the time of previous Left front Governments, the last
five budgets had laid emphasis on social welfare and livelihood jobs. But right
from the beginning, there was a significant change. That change was the thrust
given to infrastructure development. This materialized through the investments
from KIIFB. The next duty is to create Knowledge-intensive industries and
employment opportunities on this foundation. Kerala has to be transformed into
a knowledge society. Thereby the employment and welfare of everybody could be
ensured.
This
is the Kerala alternative of the Left front. This is the track envisioned by the
Budget 2021-22
REFERENCE : http://www.finance.kerala.gov.in/bdgtDcs.jsp
There
is a fall of 18.77 percent in revenue income than the budget estimates. There
was only a marginal dip of 9.64 percent in revenue expenditure as a result of
the care given for Covid response. So the revenue deficit rose to 2.94 percent.
This additional expenditure was met by availing more loans. Naturally, the fiscal
deficit rose to 4
The
income and expenditure for the year 2021-22 will show a considerable increase
compared to the previous year. A part of the loan sanctioned during 2020-21 has
been earmarked for the next year. This is the reason why the fiscal deficit is at
3.5% during 2021-22. As stated in the Medium Term Fiscal Policy, it would fall
to 3% in the coming years. The annexure to the Medium Term Fiscal Policy
document prepared by the Taxes Department narrating the GST experience of Kerala
indicates a rosy picture that the revenue will improve further. The budget
figures of 2021-22 put forward this approach.
We
are creating a new edition of the Kerala development model. We will transform
into a knowledge-based society, with strides in modern employment opportunities
and industrial growth while consolidating our achievements in the social sector
CONTENT REFERENCE:-
§ http://www.finance.kerala.gov.in/bdgtDcs.jsp
§ https://indianexpress.com/article/india/kerala-budget-2021-live-updates-thomas-isaac-ldf-government-pinarayi-vijayan/
Well done
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