Steps to overcome the socio-economic crisis caused by the second wave of the pandemic and mobilise additional revenue by increasing the fee for government services are expected to figure in the first Budget to be presented by Finance Minister K.N. Balagopal in the Assembly on Friday.
Breaking the tradition of his predecessor T.M. Thomas Isaac of preparing the Budget at the seaside Inspection Bungalow at Vizhinjam, Mr. Balagopal chose the Government Guest House at Thycaud in the capital to finalise the Budget.
Sticking to the core values of the 2021-2022 budget presented by Dr. Isaac on January 15, Mr. Balagopal is expected to come up with a new COVID package to alleviate the woes of those hit by the pandemic. The ₹1,000 crore needed for purchase of vaccines directly from manufacturers will form part of the package.
This is also expected to end the Opposition criticism that the government had failed to come up with health and disaster management plans even after two waves of COVID-19 and frequent natural disasters.
The packages will be for health, micro enterprises, agriculture, industry, and tourism sectors badly hit by the pandemic. Steps to increase the income of farmers, measures to make the State self-reliant in vegetables and value-added products, houses under LIFE Mission, and rehabilitation measures for Non-Resident Keralites may find place in Budget. Upgrade of health infrastructure will also get prominence as the second wave of COVID-19 has exposed inadequacies.
Projects to protect people in coastal areas from sea erosion and upgrade of facilities to digital mode in schools are expected. Although a ₹20,000-crore COVID package was announced by Dr. Isaac, it was mainly used to settle pending bills of contractors.
Measures for additional revenue mobilisation to contain the deficit at 4% will be rolled out without causing much hardships to citizens. A sharp reduction in GST revenue, mounting GST compensation shortfall, and revenue shortfall of ₹8,000 crore to ₹10,000 crore will force the Minister to hike taxes.
Increase in fair value of land by 10%, 5 to 15% hike in fee for various government services, and hike in tax for liquor are likely. The solace for Mr. Balagopal is the ₹19,524-crore revenue deficit grant provided by the 15th Finance Commission for Kerala for 2021-2022.
