Kerala presents welfare Budget

Earmarking a major chunk of aid towards social welfare measures, Kerala's finance minister TM Thomas Isaac presented the Budget for 2008-09 in the Assembly on Thursday.

The Rs 627.40-crore deficit Budget envisages novel schemes aimed at the social security and welfare of the working classes, the differently-abled and the people in the BPL category.

Pointing out that the most crucial link of the existing social security system was the system of social welfare funds and the pensions made available from them, Isaac said he proposed to raise the pension of nearly one million workers in the unorganised sector, working in all segments such as fisheries, coir, cashew, handloom, reed, beedi, construction and agricultural workers to Rs 200 a month.

The minister proposed pension at the rate of Rs 250 to be paid to the aged population, who are below the poverty line under the Centre's pension scheme.

Besides, traditional pre-school teachers have been included in the Artisan and Skilled Workers Welfare Fund Scheme and pension sanctioned to them too.

Workers involved in lime shell collection will be given membership in the Fishermen's Welfare Fund Board,with pension. An amount Rs 5 crore has been provided additionally for the welfare schemes of the Agricultural Workers Welfare Fund Board.

The Budget has also provided the healthcare sector the much-needed fillip. The proposals focused on how to utilise the Health Insurance Programme for BPL families announced by the Centre.

Launch of a health insurance scheme for all families below the poverty line and an amount of Rs 20 crore has been set apart in this regard. Adding that health insurance need not be limited to those below the poverty line alone, the minister proposed to include everyone interested in the scheme.

With this in mind, the state government will launch the Kerala Comprehensive Health Insurance Scheme, which would be implemented on an experimental basis in Kollam and Alappuzha districts, he said.

The scheme would be extended to all the families while those who come under Centre's poverty line specifications need to pay only Rs 30 as registration fee. The premium amount of Rs 750 will be met by the state and central governments as subsidy.

Meanwhile, those who are under the poverty line fixed by the state government will have to pay Rs 100 as beneficiary share. Families above the poverty line but which do not have a single member employed in the organised sector and have less than one hectare land will have to pay Rs 500 as beneficiary contribution.

The others have to pay the full premium, he added. The Budget has also set apart an amount of Rs 10 crore additionally for providing support to all the recognised institutions providing care to the mentally-challenged children.

Another important proposal included in the Budget is a cut in aviation fuel tax to four per cent. The minister hoped that the airlines would pass on the commensurate advantage to passengers.

...1 per cent cess on VAT

State finance minister Thomas Isaac proposed a one per cent cess on sales and value-added tax, which would fetch Rs 100 crore. This amount is expected to come in handy when the government sets out to raise funds for the welfare schemes announced in the Budget today.

The minister added that the retail biggies would have to pay an excess surcharge of 10 per cent in this regard.

On the information technology front, which is a booming segment in the state, the minister has increased the total allocation from Rs 44 crore in 2007-08 to Rs 78 crore.

The largest chunk has been allocated to the Kerala State Information Technology Mission, which remains at Rs 18.40 crore.

The mission is functioning as a nodal agency for IT industries in this state. Meanwhile, the total plan outlay for tourism has been increased from Rs 83 crore to Rs 98 crore.

Commenting on the Left Democratic Front's Budget, the Opposition UDF said that it had nothing in it for the people.

Opposition leader Oommen Chandy said the health insurance programme was started by the Congress-led government earlier and that "it is nice that Isaac has finally complemented our schemes. However, he has to explain to the poorest of the poor why he did not include this in the previous two budgets."