THIRUVANANTHAPURAM: The Rs 8,900-crore direct disbursal scheme announced by Finance Minister K N Balagopal in the budget under a Rs 20,000-crore Covid package courted controversy after he clarified that the arrears for contractors and financial assistance for those not part of any pension or welfare schemes are part of the new stimulus plan.The move invited sharp criticism from the Opposition who alleged that the finance minister has literally amended his budget speech after its presentation.
“The minister had announced during the budget presentation that money would be distributed directly to those who are in crisis due to the loss of livelihood. But how can the distribution of arrears to contractors or pension benefits announced earlier be called as a new direct benefit scheme or part of a financial stimulus scheme?” asked Opposition Leader V D Satheesan.
“This is simply misleading the public by announcing a scheme through the budget,” he said.
While announcing the second Covid package of Rs 20,000 crore to face the socio-economic and health challenges that are emerging in the backdrop of the second wave, the minister said Rs 2,800 crore will be spent to face the health emergency, Rs 8,900 crore for disbursing money directly to those who are in crisis due to the loss of livelihood, and Rs 8,300 crore towards interest subsidy for loans provided for economic rejuvenation.
PACKAGE SHORTFALL: ISAAC CLARIFIES FOR BALAGOPAL
Ex-finance minister T M Thomas Isaac dismissed Opposition leader V D Satheesan’s allegation that there was confusion in the I20,000-crore second Covid package. The second package is similar to the first announced last year, which addressed the challenges posed by the pandemic, he told reporters, adding the amount earmarked need not be included in budget speech, Isaac told reporters.
“Satheesan’s charge is that as per budget document, the excess expenditure is only I1,715 crore. This is what has been announced. However, there is an increase of another I2,605 crore within the budget. Even if both the amounts are added, it will not reach I20,000 crore. The reason (for this gap) is that I8,300 crore has been earmarked for SMEs as the government’s interest subsidy through Kerala Bank, KFC and Kudumbashree,” he said.
‘PACKAGE NOT LISTED IN BUDGET ESTIMATE’
The Opposition alleged the I20,000-crore package was not listed in the budget estimate. “In that case, the revenue deficit will increase to I37,000 crore. Former finance minister T M Thomas Isaac had announced during the last budget that the new government will not have any financial crisis as the exchequer will have a balance of I23,000 crore, including last year’s balance of I5000 crore and I18,000 crore to be provided by the Centre. But the budget has no mention about this,” Satheesan said.Welcoming the decision to deduct I3 crore from the asset development fund of MLAs for Covid containment measures, he said the new revised budget has more political statements than policy decisions.