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Kerala budget: The revenue receipts estimated for the year 2025-26 are Rs 1,52,351.67 crore and revenue expenditure is Rs 1,79,476.20 crore
The state government has earmarked Rs 750 crore for the first phase of the rehabilitation of landslide victims in Wayanad. (PTI File)
Kerala finance minister K N Balagopal on Friday said the state has overcome severe fiscal constraints, as he presented the budget.
Balagopal said, “I happily announce that we have overcome the trying times of severe fiscal constraints that had affected the state in recent years. Even during those difficult times, we could go forward with developmental and welfare activities without much hindrance. It has become clear that in tandem with a substantial reduction in fiscal difficulties, our state is poised to be in a much better fiscal position in the coming years.”
He added that the state didn’t shy away from the realities of the fiscal problems, and the government openly admitted it to the people of Kerala and sought solutions.
The revenue receipts estimated for the year 2025-26 are Rs 1,52,351.67 crore and revenue expenditure is Rs 1,79,476.20 crore.
THE HIGHLIGHTS
- Rs 750 crore has been earmarked for the first phase of the rehabilitation of landslide victims in Wayanad.
- To strengthen the cyber wing, Rs 2 crore has been set aside.
- To counter issues of wildlife attack, apart from the special package, another Rs 50 crore is earmarked.
- The state is looking at producing bio-ethanol in Kerala. Rs 10 crore is earmarked for the preliminary work.
- Rs 50 crore is earmarked for making Kerala a health tourism hub. This is for improving basic facilities and also for promotion.
- As part of revenue generation, there is a revision of court fees. The state is expecting Rs 150 crore in additional revenue.
- The finance minister has also announced several infrastructure projects keeping in mind the Vizhinjam port. Many roads connecting the port from various districts were also announced.
- Land tax rates in all existing slabs will be increased by 50% to improve revenue to the government from land. Accordingly, the rate in the lowest slab will be increased from Rs 5 per are (means 2.5 cents of land) per annum to Rs 7.5 per are per annum and that in the highest slab will be increased from Rs 30 per are per annum to Rs 45 per are per annum. Additional revenue of Rs 100 crore is expected from this.
- The government has decided to increase the road tax on private two-wheelers, three-wheelers and private motor cars beyond 15 years by 50%. The total revenue from private vehicles is Rs 110 crore per annum at present. With this, the state will gain Rs 55 crore.
- The lifetime road tax for electric vehicles, now levied at 5%, will be rationalised based on the cost of the electric vehicle.
- For electric vehicles costing above Rs 15 lakh, the tax rate will be 8% of the vehicle cost.
- For electric vehicles costing Rs 20 lakh and above, it will be 10% of the vehicle cost.
- Electric cars with a battery renting facility will be taxed at 10% irrespective of the cost of the electric vehicle. Through this hike in tax, additional revenue of Rs 30 crore is expected.
OPPOSITION ATTACK
Meanwhile, the opposition said that it is an eyewash budget.
Opposition leader V D Satheesan said the finance minister was presenting the farewell budget of the Pinarayi Vijayan government.
M K Muneer, MLA and Muslim League leader, said, “It is an eyewash budget. The taxes are high. How can the common man bear this? The common man is suffering.”
V Muraleedharan, former MoS and Bharatiya Janata Party (BJP) leader, said that the annual budget of the state government is a repetition of many announcements made in earlier years, which have not been implemented.
Muraleedharan said, “Every year the same announcements happen. In some cases, those announcements are curtailed even before the financial year comes to an end. The state government and the party which leads the government made many announcements during the last elections. They said the welfare pension will be increased to Rs 2,500. There is no announcement on that.”
Muraleedharan added that the state government, on the one hand, is going completely against the national interest, such as increasing taxes on electric vehicles. He said, “World over, there is a shift to green energy – fossil fuels to electric. The state government says they will increase taxes for electric vehicles.”
- Location :
Kerala, India, India
