)
Giving a boost to the farm sector in the state, Kerala Budget 2014-15 has shaped up the income guarantee scheme (IGS), targeted at small and medium farmers.
The scheme identified 25 different crops, which are covered under the comprehensive insurance scheme. The government would extend 90 per cent of the premium for the scheme and the rest would be paid by the farmers, said finance minister KM Mani on Friday while presenting the Budget.
Farmers holding up to two hectares would benefit from the scheme. The Budget made an outlay of Rs 50 crore towards this.
The state plans to give agri-cards to 1.87 million farmers who are registered with the agriculture department.
| HIGHLIGHTS |
|
The Budget has set apart Rs 617.23 crore for rural infrastructure development initiatives. It raised all the welfare pensions and allowances by Rs 100 -200 per month.
Deficit at Rs 7,131 crore
The Budget 2014-15 estimates revenue receipts of Rs 64,842.35 crore and a revenue expenditure of Rs 71,904.04 crore, a deficit of Rs 7,131.69 crore. It targets an additional revenue of Rs 1,556.35 crore and an additional expenditure of Rs 1,398.80 crore.
Revenue mop-up
The Budget proposed to raise the fair value of land across the state in order to enhance the stamp duty in land deals. The government had fixed the fair value eight years ago. Stamp duty rates, which were ranging from 5-7 per cent in rural, municipal and corporation areas, has now been fixed at a common 6 per cent.
It also proposed to double the building taxes across the state. The change is being effected after a gap of 17 years, the finance minister added.
Tax on vehicles raised
The government has increased the purchase tax of all vehicles including motor cycles. The tax now range from 7 per cent to 33 per cent. It also raised the tax on imported vehicles. The prices of motor vehicles will be increased with effect from April 1. Tax rates on autorickshaws and taxi cars too have been enhanced.
Liquor to be costlier
The Budget proposed to hike the duty on Indian made foreign liquors (IMFL) by 10 per cent. Now, the duty on IMFLs will be 115 per cent, the highest across all south Indian states. This would help Kerala raise Rs 400 crore.
It imposed a 2 per cent turnover tax on textiles, which have an annual turnover upwards of Rs 1 crore. Tax on edible oils, except coconut oil, has been now raised to five per cent from the present one per cent. Tax on UPS/inverter will be now be 14.5 per cent.
Due to the withdrawal of value added tax (VAT) on the subsidy portion, LPG cylinder price would cost Rs 41.32 less.
KSRTC gets Rs 150 cr grant
The finance minister provided a one-time grant of Rs 150 crore for the Kerala State Road Transport Corporation (KSRTC) which is reeling under serious financial crisis, mainly due to the price rise in diesel.
Tourism promotion
The Budget also targeted to introduce ethnic Kerala products under the slogan, 'Made in Kerala, Safe to Eat' in line with the promotion of Kerala tourism. The government will do this branding exercise with the help of the Confederation of Indian Industry (CII).
