The CPI(M)-led LDF government in Kerala today presented a tax-free budget for the year 2017-18, focusing on infrastructure development with a total outlay of Rs 35,000 crore.
Besides giving a thrust for infrastructure, social security and steps to bridge the digital divide gap, initiatives for women's safety were some highlights of the budget that showed a total revenue of Rs 93,584.74 crore for the year 2017-18.
The expenditure was 1,09,627.88 crore showing a revenue deficit of Rs 16,043.14 crore, state Finance Minister T M Thomas Isaac said.
The budget proposed to provide 20 lakh free internet connections to as many poor families and internet services at a lower rate for the others.
The Internet facility would be made available through a new optic fibre pathway named 'K-FON' within 18 months with a total capital investment of Rs 1,000 crore.
In a major initiative, an amount of Rs 16,000 crore has been earmarked for an ambitious housing project with an aim to provide houses to all homeless people in the next five years.
The Budget proposed to provide houses to one lakh home less families in the next one year.
In tune with the ruling CPI(M)-led LDF's election manifesto, the budget unveiled different schemes for improving basic amenities at public schools in Kerala.
A total of Rs 900 crore was earmarked for ration subsidy and Rs 700 crore for paddy procurement and Rs 450 crore was set apart for open market intervention to check price rise.
As part of Comprehensive social security measures, the budget raised the amount of all welfare pensions to Rs 1,100.
In a bid to tap NRI investments, Isaac said Kerala State Financial Enterprises will come out with 'Pravasi(NRI) Chitty' through bonds. The amount would be utilised to build coastal and high-range highways with Rs 10,000 crore total outlay.
On the key role played by the Kerala Infrastructure Investment Fund Board, he said projects worth Rs 15,000 crore would be finalised by it by the end of this fiscal year.
"Besides this, projects worth Rs 20,000 crore also would be announced by KIIFB in 2017-18, resulting in the highest investment project in the history of Kerala", Isaac said.
He said Kerala was fully ready to implement GST, which was "advantageous" to the state.
"The state GST law would be passed in the assembly session to be convened next month for passing the budget and the demand for grants," he said.
While giving details of the economic slowdown, felt tax revenue would remain below 15 per cent than the expected 20 per cent due to demonetisation of Rs 1,000 and Rs 500 notes.
The budget did not propose any new resource mobilisation schemes, but announced concessions for traders to settle tax arrears.
Seeking to encourage 'Akshay Urja Scheme' which promotes utilisation of renewable energy, the budget fixed the tax rate for installation of solar devices at one per cent, the finance minister said.
He said capital investment through KIIFB has been considerably enhanced and hoped introduction of GST would help reduce revenue deficit from next year.
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