Kerala Budget: Govt hikes motor vehicle, land taxes to raise funds

Aims to reduce revenue deficit, contain fiscal deficit at 3%

The Kerala government today proposed its budget for 2020-21, with measures to raise additional revenue by increasing vehicle and land taxes and settling tax arrears to bring in more revenue. The budget aims to reduce revenue deficit to 1.55 per cent of Gross State Domestic Product (GSDP) from 2.01 per cent in the revised estimates for 2019-20 and contain fiscal deficit at three per cent.

The State's revenue deficit doubled from the proposed Rs 8,770.3 crore (1 per cent of GSDP) during 2019-20 to Rs 17,474.27 crore (2.01 per cent) in the revised estimates. The revised fiscal deficit stood at Rs