UDF presents people-friendly budget ahead of assembly poll

With an eye on the upcoming assembly polls, the Congress-led UDF government in Kerala today presented the 2016-17 budget, promising free rice for BPL families and waiving tax on income from agriculture, amidst protests and boycott by the CPI(M)-led LDF.
The budget, presented by Chief Minister Oommen Chandy, spared the common man of any additional tax burden, gave thrust to infrastructure development, boost to agricultural and social sectors, besides setting apart Rs 200 crore as subsidy to students who have availed educational loans, but are unable to repay.
It was after a 29-year gap that the Kerala Assembly saw a Chief Minister presenting the state budget, which turned out to be the longest taking nearly three hours.

Chandy is the fourth Chief Minister of the state to present the budget. Chandy took over the Finance portfolio after former Finance Minister and Kerala Congress (M) leader K M Mani quit in November 2015 over the bar bribery scam.
In a bid to have 'plastic-free Kerala', the budget imposed a 20 per cent tax on all plastic bags, including non-woven polypropylene bags and a five per cent surcharge for plastic bottled drinks.
Chandy said the government expects to mobilise Rs 10 crore through this and the amount would be utilised to encourage anti-plastic movements.

The budget proposed an additional resource mobilisation of Rs 112 crore, a major portion of which will come through one-time settlement of cases in the registration department.

The budget showed a total deficit of Rs 2041.22 crore and revenue of Rs 84,092.61 crore.
As soon as the budget presentation began, LDF members, holding aloft placards and banners saying 'corrupt Chief Minister should quit', raised slogans demanding Chandy's resignation and then marched out of the house.
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The budget proposed relief for a large number of elderly population in the state, hiking the old age monthly pension to Rs 1,500 from Rs 1,000 and planning an insurance scheme for pensioners.
Chandy hit out at the opposition LDF for levelling corruption charges and protests, saying "time will not forgive those who stand against development, indulge in character assassination and create tensions in society".

In a bid to woo the weaker sections, the Chief Minister announced that all BPL families who are getting rice at Re 1 per kg through ration shops, would henceforth get it free of cost and that Rs 55 crore has been earmarked for the same.
Chandy reached out to rubber farmers who are facing severe crisis due to falling prices. He allocated Rs 500 crore to ensure they get Rs 150 per kg under the price stabilisation scheme.
To implement poverty alleviation programme, an amount of Rs 257.89 crore has been allocated.
Chandy also said the government would draw up the Kerala Infrastructure Development Fund to mobilise capital investment of Rs 30,000 crore to meet the state's basic infrastructure needs under the 'State Perspective Plan 2030'.

The budget also earmarked Rs 2,500 crore for the government's flagship Kochi Metro and Vizinjam Port projects.
A total of Rs 4,057.4 crore has been allocated for rural development and Rs 2,500 crore for PPP projects to improve basic infrastructure facilities in the next fiscal.
Announcing certain tax exemptions, Chandy said that food products manufactured by inmates of state prisons, cleaning liquid used to wash vegetables and canes used by visually challenged have been excluded from the purview of tax.
The budget also allocated Rs 100 crore for a new dam at Mullaperiyar.
Attacking the government and Chandy, opposition leader V S Achuthanandan told reporters outside the assembly that the budget had been "leaked" before it was tabled in the House.

The LDF opposition have been on an agitational path, demanding resignation of Chandy and some of his cabinet colleagues after charges of bribery were levelled in the solar and bar scams.
The House had witnessed unprecedented violence on March 13, 2015 when LDF disrupted the budget presentation by Mani, demanding his resignation.