THIRUVANANTHAPURAM: Finance Minister KN Balagopal’s first full budget on Friday will unveil concrete plans to help the economy bounce back following the pandemic. The minister had hinted that it will have wide-ranging measures, including some innovative ideas, to revive key sectors that contribute to the Gross State Domestic Product (GSDP). Balagopal will present the budget at 9am.
Factoring in the possibility of a stop to the GST compensation scheme and the decline in devolution and deficit grant, Balagopal is sure to announce a hike in certain taxes and fees. A hike in fair value of land, which will result in an increase in stamp duty and registration fees, is expected.
The government may also open up a new avenue for investment by encouraging liquor and wine manufacturing units based on local agricultural produce. The budget is likely to offer sops to prospective entrepreneurs joining the government’s “one lakh new MSME” scheme. An interest subsidy scheme is expected. There may also be announcements for private industrial parks having minimum 10-acre area. A single window clearance facility and government-run clusters of allied industries are also expected. Kerala Brand, a branding exercise by the government for products and services, may also find a place in the budget.
Economists have urged the government to include a debt management plan considering the huge public debt, including off-budget borrowings. The government’s response is awaited as both regimes led by Pinarayi Vijayan have, so far, not attempted to formulate a policy to deal with the mounting debt.
According to the 2021-22 budget, the government as an outstanding debt of Rs 3.27 lakh crore, which is 37.39% of GSDP, a rise from 29.82% in 2018-19. Friday’s budget will have the revised estimate on outstanding liabilities which are sure to be higher than the previous estimate. The Economic Review will also be presented on Friday.
Kerala Budget app
T’Puram: The Finance Department has launched a web portal providing comprehensive data on the budget and also a mobile application giving instant access to budget documents. The app will be live soon after the budget presentation in the Assembly on Friday. The web portal is www.budget.kerala.gov.in. It facilitates view and download of budget documents since 2015-16. Budget speeches since 1957 are available on the portal. Major budget indicators are also available as infographics (charts and graphs), according to the department. The mobile app ‘Kerala Budget’ can be downl-oaded from Google Play Store and IOS.