Kerala Budget highlights: Overhaul of higher education, medical hub, reforms in land sector, revision of NPS.
The Kerala Budget 2024-25, presented in the Legislative Assembly on Monday by Finance Minister K N Balagopal, plans to convert the state into a medical hub, overhaul the higher education sector to attract international students and bring in necessary reforms in the land sector to attract investment in agriculture and industry.
It also plans to review the National Pension Scheme (NPS) and implement a ‘revised scheme’ for state pensioners. The price of Indian-made foreign liquor in Kerala, which is already the highest in the country, would go up further with the decision to slap a gallonage fee of Rs 10 per litre.
Balagopal, however, did not announce new mega projects in the budget for the fourth year of the second consecutive regime of the Left Democratic Front (LDF) government helmed by Pinarayi Vijayan.
On the tax proposals side, the minister has mooted levying land tax from apartment dwellers (for their undivided share of land) and revising the fair value of land after 13 years. Banks would be levied a sum on loans given mortgaging land.
The minister said programmes are being planned to attract investment of Rs 3 lakh crore within the next three years. “The thrust areas will be short-term tourism projects, allied developmental activities around Vizhinjam seaport, which is likely to be commissioned this year, Cochin Ports, development of industrial corridors and IT and IT-enabled services (ITES).
Work-near-home ventures, startups and new-generation industries growing in small towns of Kerala will be encouraged and supported through capital and interest subsidies.
“In addition to public sector investment, subsidy schemes, new-generation investment models like public-private partnerships, joint ventures, Cochin International Airport Limited (CIAL) model companies, Infrastructure Investment Trust (InvIT), Real Estate Investment Trusts (REIT), Hybrid Annuity Model (HAM) will be explored. Enabling legal and policy decisions will be taken,’’ the minister said.
Measures to address land scarcity
Reforms will be made in the land sector to ensure the speedy issuance of sanctions without compromising the conservation of the climate and environment. To resolve the issue of land scarcity, an expert committee will be constituted to study these matters and submit a report within three months, based on which further actions would be taken.
Balagopal proposed to establish a special company to identify and agglomerate parcels of land available in Kerala suitable for industries and distribute the same among entrepreneurs for basic infrastructure development to boost the economy and infrastructure development. This company, with an authorised share capital of Rs 1,000 crore, will be formed in cooperation with Kerala State Financial Enterprises and non-resident Kerala people under the aegis of Kerala Financial Corporation, said Rajagopal.
To encourage investment in agriculture, the government will encourage the consolidation of fragmented holdings for profitable cultivation of crops. The minister said legal and policy support would be ensured for the same.
Care centres of international standards
Considering the state’s fast-growing ageing population, a scheme will be formulated to set up care centres to provide health care and protection. Care will also be given to foreigners and people outside the state in these centres. The minister said these care centres can be developed into international standards with the private sector’s participation.
“If Kerala becomes a care hub of people coming from different parts of the world for retired life and care, it will be a major asset to the economy,” said the minister.
Higher education hub
Balagopal said schemes to attract capital investment in the education sector would be initiated and legal amendments will be made to enable students from outside the state to pursue higher studies in Kerala.
To stem the flow of students abroad for higher education, the budget proposes to convert Kerala into a higher education hub.
“There has been a significant increase in students going abroad for educational purposes. In 2022, this number increased to 13.2 lakh. It is estimated that 4 per cent of the Indian students abroad are from Kerala. This year, the state government intends to formulate comprehensive policies and associated programmes, including changes required in Kerala’s higher education structure. The objective is to follow the roadmap to attain excellence laid out by the commission established by this government in 2022 for reforms in the higher education sector,” said Rajagopal.
“The objectives of this initiative include formulating a higher education investment policy. This policy will also include special incentives and packages to attract investments for establishing new higher education institutions in Kerala having international standards in partnership with reputed national and international educational institutions,’’ added Rajagopal.
He said opportunities for establishing foreign university campuses would be examined in accordance with the new University Grants Commission (UGC) guidelines without compromising on the principles of transparency and equality.
‘Assured’ pension system
The minister said the government plans to review the NPS and implement a ‘revised scheme’ that will provide security to the employees.
“Necessary action will be taken to get back the share given to the central government. A revised scheme will be formulated to implement an ‘assured’ pension system. New schemes of similar nature in other states will also be studied and necessary steps will be taken to implement in the state,’’ he said.
The minister said Kerala’s total expenditure, which was Rs 1,38,884 crore in 2020-21, will rise to Rs 1,68,407 crore by the end of this year, registering a growth of Rs 30,000 crore over the last three years.
“The government has not curtailed any justifiable expenditure. There will be no financial crisis if there is neither development nor welfare expenditure,’’ he said.
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Source from: https://indianexpress.com/article/india/kerala-budget-2024-kn-balagopal-speech-9144586/