Kerala seeks 4,500-crore package to build climate resilience ahead of Feb 1 Union Budget

As per the state government’s estimate, Rs 11,650 crore is required for a comprehensive package to tackle coastal erosion.
Image used for representational purposes only
Image used for representational purposes only
Updated on
2 min read

THIRUVANANTHAPURAM: A Rs 4,500 crore assistance for climate resilience activities is among the demands put forward by Kerala in the union government’s pre-budget consultation. The state has high hopes for the proposal as it would augment its plan for a comprehensive climate response programme.

The state government’s upcoming budget is expected to have major announcements on capacity building for climate resilience. As per the state government’s estimate, Rs 11,650 crore is required for a comprehensive package to tackle coastal erosion. Rs 186 crore is required for the Punargeham rehabilitation project for fisherfolk and Rs 500 crore for modernising fishing harbours.

The state has demanded Rs 1,000 crore allocation in the union budget for projects to tackle man-animal conflicts. Other major demands are a Rs 24,000 crore special package to compensate for the revenue loss to the state and another for the rehabilitation of landslide victims in Wayanad.

The special package demand is in the backdrop of the huge revenue losses to the state from the stoppage of GST compensation and revenue deficit grant, and the cut in borrowing limit. According to the state, the centre’s unscientific borrowing norms pushed the state into a financial crisis.

The Wayanad rehabilitation package is to fund the township projects conceived by the state for rehabilitation of the victims. The state expects a positive response since the union government had declared it a disaster of extreme severity.

According to Finance Minister K N Balagopal, the country is staring at an economic slowdown. “While presenting the previous budget, Union Finance Minister Nirmala Sitaraman had predicted that the country would achieve 7.3 pc economic growth. But the real growth of the Indian economy in the second quarter was only 5.4 pc,” he said.

“At the pre -budget discussion, Kerala has demanded immediate steps to revive the economy. Also, state-specific demands like the special package to make up for revenue loss and the one to rehabilitate the landslide victims were put forward,” he said.

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