Kerala budget spares common man; enhances revenue collection

Jays Jacob
15 March 2003

Thiruvananthapuram: Kerala Finance Minister K Sankaranarayanan has spared the common man from any new taxes but announced development measures to the tune of Rs 453.21 crore to be met through enhanced revenue collection and prudent fiscal management.

The state budget for 2003-04, whose presentation was virtually stalled by the Opposition Left Democratic Front, demonstrating against the Muthanga police firing, showed a deficit of Rs 519.88 crore mainly resulting from a revenue loss of Rs 500 crore due to the introduction of value-added tax (VAT) from 1 April 2003.

Fiscal 2002-03 is to close with a cumulative surplus of Rs 30.10 crore, while a surplus of Rs 403.23 crore is anticipated during 2003-04. With the current budget containing development expenditure of Rs 453.21 crore, the year is expected to close with a deficit of Rs 519.88 crore when loss from VAT has been taken into account.

In the budget estimates for 2003-04, the total revenue expenditure is estimated at Rs 15,364.64 crore and the total revenue receipts are Rs 12699.61 crore.

The finance minister announced a social safety net for destitutes, insurance scheme for the disabled, medical insurance for pensioners and two installments of dearness allowance to government employees.

Carrying forward the reforms process, the minister said a fiscal responsibility bill and a sinking fund for debt management are on the cards. He announced a Rs 50-crore price stabilisation for cash crops, a traditional industries support fund with a corpus of Rs 50 crore.