Kerala Budget 2024: FM looks to attract Rs 3 lakh cr of investments as state opens doors for pvt players

Thiruvananthapuram: Finance Minister K N Balagopal on Monday presented his fourth and longest budget yet. Calling the state a sunrise economy, Balagopal's budget for 2024-25 has thrown open the gates for private investment to salvage Kerala from a severe financial crisis.

"The sunrise sectors are defined by futuristic strides in technology, an exponential rise in demand and the resultant economic development. This is unlike the sunset sectors which have weakening demand and are driven by technologies that are destined for obsolescence," said Balagopal opening his Budget speech.

The budget expects a revenue of Rs 1,38,655 crore and expenditure of Rs 1,84,327 crore. There is a revenue deficit of Rs 27,846 crore, which is 2.12 per cent of the state's GDP. The fiscal deficit has been pegged at Rs 44,529 crore, which is 3.4 per cent of the GDP.

Balagopal said the government aims to attract an investment of Rs 3 lakh crore to the state in the next three years. "The thrust areas shall be the projects in tourism which can be completed in a short span, allied developmental activities in and around Vizhinjam and Cochin Ports, development of industrial corridors of Kochi, Palakkad and Kannur for which land has already been acquired, and IT-IT Enabled Services (ITES)," he said.

He also said the Vizhinjam port will begin functioning in May. Other promises and allocations made included transforming Kerala into a medical, higher education and robotics hub.

Balagopal criticised the hostile approach of the Centre toward the state and said Kerala cannot remain a mute spectator while it is being pushed to the worst financial crisis in its history. "Instead, we should strive forward with the strong sentiment of 'Thakarilla Keralam, Thalarilla Keralam, Thakarkkanavilla Keralathe' (Kerala will not be shattered, Kerala will not tire, Kerala cannot be destroyed). The government will provide leadership in taking forward our achievements and progress while ensuring that all Keralites stand united in building a New Keralam (Navakeralam). We need to reclaim our legal and constitutional rights through strong action by espousing the foundational ideals of cooperative federalism," said Balagopal. 

"For every Rs 100 collected as tax, the Centre gives Kerala only Rs 21. For Uttar Pradesh, it is Rs 46," Balagopal pointed out. He further said instead of waiting for justice from the Central government, the state will utilise all its resources to raise capital investments from private and public sectors, thereby ensuring speedy implementation of all its programmes. "Along with strengthening existing models, Out-of-the-Box project implementation models that promote efficiency and innovation will also be adopted. We intend to formulate short-term projects that can generate employment and income, in addition to medium and long-term projects," said Balagopal. 

The minister also said the government will continue its efforts to implement the proposed K-Rail project for high-speed rail travel. Consultations are ongoing with the central government in this regard, he added.

Budget at a glance
1. Expected revenue: Rs 1,38,655 crore; expenditure: Rs 1,84,327 crore
2. Revenue deficit: Rs 27,846 crore (2.12 per cent of state's GDP)
3. Fiscal deficit: Rs 44,529 crore (3.4 per cent of GDP)
4. An increase of Rs 7,845 crore in tax revenue and Rs 1,503 crore in non-tax revenue is targeted
5. Allocation of Rs 34,530 crore in the capital investment sector, including KIIFB
6. Rs 535.9 crore for crop management
7. Rs 93.6 crore for seven paddy-producing farm housing units
8. Rs 78.45 crore for the development of non-toxic vegetables
9. Rs 65 crore for the development of coconut cultivation; Rs 18.92 crore for the development of fruit crops, of which 25 per cent of beneficiaries will be women
10. Rs 43.9 crore for Agricultural Produce Marketing Scheme
11. Rs 83.99 crore for soil water conservation
12. Allocation of Rs 277.14 crore for Animal Welfare
13. Rs 109.25 crore for the dairy development sector
14. Rs 227.12 crore for fisheries sector
15. Rs 22 crore for down season relief of fishermen
16. Rs 80.91 crore for inland fisheries sector
17. Rs 136.98 crore for coastal development
18. Rs 60 crore for infrastructure and manpower development of fishermen
19. Rs 10 crore for the scheme of providing land and houses for rehabilitation of fishermen
20. Rs 10 crore for coastal infrastructure
21. Rs 40 crore for annual operations of Punargeham project
22. Rs 9.5 crore for fishing ports
23. Rs 11.18 crore for Fishermen's Accident Insurance Cover Scheme
24. Rs 10 crore for renovation work of Muthalappozhi fishing port
25. Rs 5 crore for initial works of the new fishing harbour at Pozhiyur
26. Rs 1,000 crore activities to revitalize the manufacturing sector
27. Special scheme for promotion of sandalwood cultivation and protection of sandalwood
28. Rs 232.59 crore for the forest and wildlife sector
29. Rs 50.3 crore for Environmental Restoration Infrastructure Development Fund.
30. Rs 48.85 crore for human-wildlife conservation mitigation
31. Rs 6 crore for Puthur Zoological Park
32. State share of Rs 100 crore for Kerala Climate Resilience Agricultural Value Chain Modernization Project; Rs 2,365 crore will be spent on the project which will be implemented in 5 years with the help of the World Bank.
33. Rs 25 lakh for Health Insurance Scheme for journalists.
34. Rs 2 crore for Nadukani Safari Park
35. Tiger Safari Park in 120 hectares of Peruvannamoozhi forest
36. The Local Self-Government Scheme share has been increased to 28.09 per cent of the state scheme contribution. (Allocation of Rs 8,532 crore)
37. Rs 1,768.32 crore for rural development
38. By November 2025, Kerala will become free from extreme poverty
39. Rs 265 crore for Kudumbashree
40. Rs 1,736.63 crore for public education sector
41. Rs 456.71 crore for the higher education sector
42. Rs 2,052.23 crore for public health sector
43. By March 31, 2025, the target is to complete 5 lakh houses under the LIFE scheme; Rs 1,132 crore allocated for the next fiscal
44. Scheme of old-age friendly housing for senior citizens
45. Rs 10 crore to make 9,004 houses habitable under MN Laksham Veedu Housing Scheme
46. Rs 75 crore each for Kasaragod, Idukki and Wayanad packages
47. Rs 27.6 crore for Sabarimala Master Plan
48. Rs 134.42 crore for the cooperative sector
49. Rs 588.85 crore for irrigation, flood control and coastal management
50. Rs 1,150.76 crore for the power sector
51. Goal of achieving 1,000 MW capacity through solar energy
52. Rs 1,120.54 crore for KSRTC
53. Rs 400 crore for Dyuthi project
54. Rs 1,729.13 crore for Industry and Minerals sector
55. Rs 773.09 crore for medium and large scale industries.
56. Rs 2,150 crore for International Commercial Complex in Kochi's Marine Drive
57. Rs 53.36 crore for the cashew industry
58. Rs 2 crore for cashew factory renovation
59. Rs 40.81 crore as a revolving fund for the cashew board
60. Rs 51.89 crore for the handloom sector
61. Health and Safety Fund to be constituted with public participation.
62. Rs 100 crore for implementation of the Smart City Mission project
63. Plantation workers' relief fund Rs 1.1 crore
64. Rs 107.64 crore for coir industry
65. Rs 14.80 crore for the Khadi industry
66. Rs 127.50 crore to KSIDC
67. Rs 22 crore for investment promotion activities
68. Rs 6 crore for Startup Mission initiatives
69. New health insurance scheme for Anganwadi employees with coverage up to Rs 2 lakh
70. Office complex for various offices under the Finance Department will be constructed at Thiruvananthapuram
71. A new scheme called 'Annuity' will be implemented to provide a certain amount of money to government employees every month after their retirement
72. Rs 35 crore for Life Science Park
73. Rs 9 crore to Kerala Rubber Limited
74. Rs 300.73 crore for major infrastructure development projects
75. Rs 324.31 crore for Kinfra
76. Rs 20 crore for Keltron
77. Rs 507.14 crore for IT sector
78. Rs 52.50 crore for Kerala Space Park
79. A total of 2,000 additional Wi-Fi hotspots in the state
80. Rs 23.51 crore for Kerala Digital University
81. Rs 260 crore for graphene-based product development
82. Rs 1,976.04 crore for the transport sector
83. An instalment of DA will be sanctioned to government employees and pensioners; it will be received along with the salary for April
84. Assured Pension Scheme in place of Contributory Pension Scheme
85. Rubber subsidy increased to Rs180
86. Rs 961.14 crore for urban development programmes
87. Rs 90 crore for financial assistance to Khadi, Bamboo, Cane, Fishing and Processing Cashew, Coir and Palm Handicraft sectors
88. Rs 2,979.4 crore for Scheduled Caste sub-schemes
89. Rs 859.5 crore for Scheduled Caste Development
90. Rs 167 crore for welfare schemes of other backward-class communities
91. Rs 73.63 crore for minority welfare
92. Rs 35 crore for the welfare of forward communities
93. 50 new branches for KSFE
94. Programmes to attract investment of Rs 3 lakh crore in 3 years
95. Special Development Zones to exploit the potential of Vizhinjam Port
96. Those who complete their PG in Digital University will be allowed to study for PhD at Oxford University