Kerala budget 2023: Petrol, diesel prices to rise; non-electric cars, homes, land & liquor to be costlier

The budget allocated Rs 1,000 crore through Kerala Infrastructure Investment Fund Board (KIIFB) for development of Vizhinjam ring road as an industrial corridor.

Kerala Finance Minister K N Balagopal having a chat with Chief Minister Pinarayi Vijayan at the Assembly before his budget presentation. (Photo | Deepu BP, EPS)

THIRUVANANTHAPURAM: Fuel prices in the state are set to increase from April this year, with a social security cess of Rs two per litre proposed on petrol and diesel in the state budget 2023-24.

The budget, presented by Finance Minister KN Balagopal in the Assembly on Friday, also includes proposals that will lead to an increase in the prices of land and liquor, the cost of non-electric vehicles, and industrial and commercial power tariff. Homes will also become costlier with a hike proposed in property tax and building permit fees.

Rs 2,000 crore to 'arrest price rise'

Allocation of Rs 2,000 crore for market intervention initiatives to arrest price rise, Rs 1,000 crore assistance through Kerala Infrastructure Investment Fund Board (KIIFB) for development of Vizhinjam ring road as industrial corridor, and Rs 600 crore as rubber subsidy are some of the other key highlights of the budget. 

Public Transport

The budget stressed on promoting public transport with an allocation of around Rs 330 crore for road and water transport. The transport sector as a whole gets a boost with Rs 2080 crore budget allocation. Kerala State Road Transport Corporation (KSRTC) gets an allocation of Rs 131 crore.  Finance minister KN Balagopal said that allocation for bus fleet revamping has been increased from Rs 50 crore in 2022-23 to Rs 75  crore next fiscal.

He earmarked Rs 20 crore for computerisation and e-governance projects which are expected to make the bus travel smarter and efficient. For basic infrastructure development and depot renovation Rs 30 crore has been allocated.

The budget promoted low-cost prefab technology in constructing new bus stations. Following the success of such a bus station in Kottayam we have decided to allocate Rs 20 crore for the construction of similar bus stations in Vizhinjam, Attingal, Kottarakara, Kayamkulam, Kannur, Kasaragod, Ernakulam, Thrissur, said Balagopal. The road transport sector gets an allocation of  Rs 184.07 crore while the Motor Vehicle Department gets Rs 44.07 crore.

The inland water transport sector gets Rs 144.6 crore. The Kerala State Water Transport Department (SWTD) gets Rs 24 crore to purchase new boats, Rs 2.5 crore for new barges, and Rs 4.2 crore for new cruise vessels.

Other major announcements in the budget:

• Social Security Cess on sale of Petrol and Diesel at the rate of Rs. 2 per litre.
• One-time tax on newly purchased motorcycles having purchase value up to 2 lakh enhanced by 2%.
• One-time cess on newly registered motor vehicles increased.
• One-time tax on newly purchased motor cars and private service vehicle for personal use increased.
• One-time tax on electric motor cabs and electric tourist motor cabs reduced to 5% of the purchase value.
• Fair value of land to be increased by 20 per cent.
• Rs 300 crore for west coast canal economic corridor.
• Rs 300 crore for urban development.
• Rs 100 crore for 'Make in Kerala' project that focuses especially on agri start-ups.
• Rs 100 crore to raise the standards of six municipal corporations in the state.
• Rs 100 crore for various welfare and development projects.
• Rs 50 crore for development of tourism corridors.
• Rs 50 crore allocation this year for 'work near home' project.
• Rs 20 crore to start new nursing colleges in Idukki and Wayanad.
• Rs 10 core for energy park; hydrogen hubs in Kochi and Thiruvananthapuram.
• National highway development projects to be completed in next three years.
• Digital science park to become operational by May 2023.