The Kerala Budget for the fiscal year 2024-25 was presented by Finance Minister Shri. K. N. Balagopal on February 5, 2024. The budget, formulated amidst challenges and financial constraints, outlines a comprehensive strategy to foster economic growth, promote innovation, and address various sectors crucial to the state’s development.
Revenue and Expenditure
The budget, aiming to strike a balance between revenue and expenditure, envisions a revenue of ₹138,655.16 crore against an expenditure of ₹166,501.21 crore, reflecting a fiscal deficit. The Finance Minister underscored the state’s commitment to cooperative federalism and criticised the Central government for withholding rightful benefits.
Fiscal Measures
Several fiscal measures were announced, including a scrapping policy for old vehicles and furniture in government departments, with an expected revenue of ₹200 crore. Additionally, stamp duty for land, building lease agreements will be increased, and the fair value of land will be revised, with land tax fixed based on the type of use.
Social and Welfare Schemes
The budget revealed a focus on social welfare, with the introduction of an amnesty scheme for traders to pay unpaid debts before the implementation of GST. However, no hike in social security pensions was announced, and steps will be taken to ensure timely disbursal.
Sectoral Allocations
The budget allocates funds to various sectors, showcasing the government’s commitment to diverse development initiatives.
1. Infrastructure and Connectivity
An allocation of ₹239 crore for the second phase development of Kochi Metro.
Development of the Malabar International Port with an allocation of ₹9.65 crore.
NH 66 development works to be completed soon, enabling travel from one end of the state to the other in 8 hours.
Centre’s sanction soon expected for commencing work on Thiruvananthapuram Metro.
The government will forge ahead with steps to realise the SilverLine project.
High speed rail corridor imperative for Kerala.
2. Agriculture
An allocation of ₹136.9 crore for the agriculture sector.
Support price for rubber to be increased by ₹10 to ₹180 under the rubber price stabilization fund incentive scheme.
3. Education and Skill Development
₹456.71 crore allocated for the higher education sector.
₹35.1 crore allocated for ASAP Kerala, offering skill development programs.
₹33 crore allocated for the Kerala Academy for Skills and Excellence.
4. Technology and Innovation
Kerala Information Technology Infrastructure Ltd gets an allocation of ₹119.91 crore.
Kerala Startup Mission receives an allocation of ₹90.5 crore.
An international AI conclave in association with IBM planned for July 2024.
5. Health and Social Security
Allocation of ₹678.54 crore for the Karunya Arogya Suraksha Padhathi, the State’s health insurance plan.
₹25 crore earmarked for the NoRKA Department Project for Returned Emigrants scheme.
Introduction of an insurance scheme for anganwadi workers.
6. Tourism
An allocation of ₹351.41 crore for the tourism sector.
Plans to develop 20 destinations for gatherings of up to 500 people, starting with facilities in Varkala, Kollam, Munnar, Fort Kochi, and others.
7. Co-operative Sector
The Co-operative sector receives an allocation of ₹134.42 crore.
Criticism towards the Union government for attempts to destroy Kerala’s co-operative sector.
8. Housing and Infrastructure
₹1,132 crore allocated for the LIFE housing project, aiming to complete 5 lakh houses by March 2025.
₹100 crore earmarked for basic infrastructure projects in Kuttanad.
Digital University
Kerala Digital University is set to receive a development fund of 250 crores as per the state budget, confirming its operational commencement. With the authority to independently generate revenue and government support, the university will offer Ph.D. programs in collaboration with Oxford University, focusing on Artificial Intelligence. The budget announcement also includes a special scholarship fund of ten crores to facilitate research collaboration with Oxford. Over the past three years, the Digital University has secured 200 crores in research aid and has been pivotal in supporting more than 80 startups. Additionally, APJ Abdul Kalam Technical University has been allocated 71 crores for constructing its headquarters and establishing three specialised centres.
Kerala Startup Mission
Minister K.N. Balagopal has announced the government’s commitment to support startups and work-from-home initiatives through the Kerala Startup Mission (KSUM) work pods, creating 50,000 job opportunities. The state has received 5,500 crores in venture capital funding, contributing to the establishment of over 50,000 jobs and promoting a global entrepreneurial ecosystem. The Finance Minister highlighted the state’s recognition as the best startup ecosystem in India and emphasised the expansion of the initiative with a budget allocation of 10 crores to set up additional work near home centres in various districts. Additionally, the decision to establish Zoho Corporation’s second residential campus in Kottarakkara was underscored as a significant move towards attracting international companies to the state.
Special Initiatives
The budget introduces several special initiatives:
A judicial city to be set up in Ernakulam.
A pre-production centre for graphene-based materials in Ottapalam.
An allocation of ₹553.31 crore for social security and welfare programs.
Establishment of a Safari park in Nadukani and a Tiger Safari park in Muthukad to boost tourism in North Kerala.
Challenges and Vision
Finance Minister Shri. Balagopal addressed challenges posed by the Centre’s policies, emphasising an investment-friendly climate in Kerala. The budget envisions an eradication of extreme poverty by November 2025, setting an ambitious goal for the state.
The Kerala Budget 2024 reflects a strategic approach to overcome challenges, promote inclusive development, and position the state as a hub for innovation and growth in various sectors.
