The Hindu : Kerala News : Union budget: need for more emphasis on key areas

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Monday, Mar 17, 2008
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Kerala

Kerala

Union budget: need for more emphasis on key areas

From the common man’s perspective, how far does the State Budget 2008 go towards meeting Kerala’s dreams, aspirations and expectations on multiple fronts? Our readers respond:

No concrete plan

Though most of the media have highlighted the Kerala budget 2008 as a welfare budget, its long-term impact will be adverse. Investing in medical insurance, as has been proposed in the budget, is not the same as making the public healthier. There is no concrete plan for improving agricultural productivity. Just Rs.365 crore is set aside for agriculture and allied fields — Rs.30.25 crore for Kerala Agricultural University and Rs.50 crore for agricultural debt relief. These investments do not increase agricultural yield. The farmer is not given protection either. There is nothing in the budget to promote organic farming.

S. Guruvayurappan

Thathamangalam

Tax compliance

There is no proposal to reduce Kerala’s debt. If the government takes measures to ensure tax compliance, debt can be brought down. Sales tax collection can be doubled if government takes suitable action. Sales tax registration procedures should be simplified and corruption in the department eradicated.

Arangil N. Vasudevan

Bilathikulam

A mixed bag

The Kerala budget 2008 is a mixed bag with a pronounced people-friendly touch. As we know, there would have been political compulsions behind its making. The thrust on the production sector is good. The increase in welfare pensions is a commendable step. Farmers have not been given due consideration. The move to appoint more than 1,000 teachers in the higher secondary section and the lifting of the ban on recruitment of teachers in aided colleges will hopefully improve the standard of education. The Rs.700-crore package for the Kerala State Road Transport Corporation (KSRTC) will help it significantly. At the same time, the one per cent cess on sales tax and value added tax, to raise Rs.100 crore, is bound to take away the sheen of the benefits and measures proposed for the betterment of society. The cess will lead to escalation of prices. As the Finance Minister has few avenues for revenue generation, the cess is likely to stay.

He has thoughtfully earmarked moderately good sums for market intervention by Supplyco and Consumerfed. The Finance Minister has also stated that the State’s finances will look up by 2010. It is a relief. In fact, we owe a great deal to the imminent elections for all the goodies in the budget.

N.K. Vijayan

Kochi

Reduce imbalance

Budget presentation has become an exercise of rhetoric and its content and contour tends to be appeasing one section or the other with focus on electoral gains. Dolling out cash or mere announcements cannot ensure economic development. The focus should be on how the imbalance can be reduced. In the budget presented in the Kerala Assembly, the Finance Minister had proposed an increase in the pension to certain categories and also inclusion of new constituents under the scheme as a welfare measure. He had also announced several new schemes but has not made any concrete proposals in the area of resource mobilisation. On our part, in a developing economy, the tendency of expecting everything free or at a subsidised rate is ridiculous. Let us look at free electricity being provided to farmers. Instead of providing them free power, the authorities should consider levying a token from those agriculturists who are having large landholding and are rich.

T.N. Ramachandran Nair

Thrissur

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