Kerala - Kochi   

Budget disappoints Kochiites

Staff Reporter

KOCHI: The budget proposals disappointed the civic representatives of Kochi as it failed to address the pressing needs of the city.

The State budget has not set apart any fund for the infrastructure growth of the city, which is in the threshold of a development boom, said C.K. Manisankar, Deputy Mayor.

Though fund has been earmarked for the Kochi metro railway project and the State's share of the Jawaharlal Nehru National Urban Renewal Mission, no support has been offered for addressing the infrastructure requirements, including measures for easing the traffic blocks, he said.

A.B. Sabu, the UDF parliamentary party leader of the Kochi Corporation, said that the budget disappointed the people of Kochi as the city failed to get its due.

The previous UDF Government led by Oommen Chandy had supported the city by setting apart funds for its development. However, the LDF Government failed to take into account the development needs of the city, he said.

The Kerala Hotel and Restaurant Owners' Association has called the budget disappointing. "This is not what we expected," said K. Kuriakose, president of the Association.

The luxury tax on hotel rooms costing Rs.200 onwards would hit the low cost traveller. "We wanted the tax be levied from Rs.500 onwards. There are a lot of middle-class hotels where the luxury tax will affect the common man," Mr. Kuriakose said.

The Association had also asked for an industry status for the hotel and restaurant sector, especially with respect to some relief on electricity tariff. "We cannot control about 40 per cent of the electricity expenditure," he said.

Including the hotels with a turnover of Rs 10 lakh under VAT of 0.5 per cent is like penalising all in the business, he said.

The Finance Minister had only set aside Rs.1 crore for water transport. "If this infrastructure is developed in the State, it will not only give much relief to the road transport, but will also provide the right impetus to tourism," Mr. Kuriakose said.

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