The Kerala Budgetfor the financial year 2022-23 looks growth-oriented and forward-looking. It tries to strike a balance between the challenges of the COVID-19 pandemic and the need to further strengthen the economy.
The emphasis going forward has prima facie been laid on infrastructure growth, inclusive development, and sustainability for the collective development of the economy. The Budget can be described as business-like, with several reforms laying emphasis on ease of doing business and reviving economic growth.
The ₹2,000-crore outlay to check price rise and ensure food safety is relevant and important to curb inflation. The IT parks in Kannur and Kollam, along with the proposed four other IT corridors, will add significant thrust to the economic development by spurring new job opportunities. The proposed launch of 5G services, science parks, and agri-tech facilitation will grow the IT sector by leveraging world-class solutions and best practices in the industry.
The education sector receives a great financial thrust in the Budget allocation, especially in the higher education sector. The outlay of ₹346 crore for mid-day meals in schools, ₹7 crore for developing basic infrastructure in public schools, and ₹140 crore for school uniforms are hinting positively at the intention to make the kids well supported for education. Distributing milk and eggs in anganwadis will make sure that the kids will grow up healthy. Special mentions in developing skill parks, and advanced research facilities may prove impactful to empower the education of the young generation.
Our healthcare sector receives great impetus by funds for enhancing the facilities of medical colleges, medical innovation labs, and various research centres. The transportation sector receives major thrust with projects parted for bypass and approach road developments.
The IT and industrial developments will leverage the benefits of these roads and play an important role in facilitating the migration of people and transportation of raw materials.
Green initiatives such as solar powering 50% of the State-run boats can reduce the carbon footprint and minimise the impact of global warming and climate change. The Budget has raised the slab of subsidies provided for the installation of solar panels on a domestic basis. This can motivate more end-users to adopt solar energy which is more cost-efficient, renewable, and eco-friendly.
Raising the slab of e-auto subsidies can also be appreciated as it positively invites more inclusion and participation of people. Subsidy for converting fossil fuel-powered autos to electric requires special mention as well.
Desilting dams will increase the volume of water and reduce the flood impact by enhancing more storage capacity. It reduces soil erosion and nourishes soil conservation. Hiking the minimum support price of paddy is expected to bring some solace to the farmers.
Special mentions on paddy support schemes, coconut promotion, micro-irrigation projects, plantation crops, etc., can be expected to boost the agriculture production. A 20% subsidy allocated to students is an optimistic gesture to attract more young generation to agriculture.
Implementing mobile ration shops in rural areas, especially in tribal areas, will enhance the convenience and elevate the social status of underprivileged people. The proposed subsidies in the construction sector will boost the activity in the sector.
The Budget layoff for the tourism sector will give a new lifeline to the local communities and rejuvenate the resorts that are affected by the COVID-19 pandemic. Overall, the Budget appears to be well-crafted with its intent and collective rejuvenation of the economy. Hope it creates an opportunity for Kerala to leapfrog in terms of its development prospects.
(George Alexander Muthoot is Managing Director, Muthoot Finance)
