Kerala   

Need for more emphasis on key areas PEOPLESPEAK

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 1000 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

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.

Doling 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. Rich agriculturists get double benefits — free or subsidised electricity and exemption from income tax. The system of tax collection is laid back and calls for a transparent and speedier system in place so that the tax revenue flows to the state exchequer in a smooth manner. After all, budget should be seen as a balancing act rather than making it an election stunt.

T.N. Ramachandran Nair

Thrissur

The Finance Minister claims the budget to be a common man’s one. While it is true to an extent that there are some populist and welfare-oriented schemes for the benefit of the weaker sections, the fundamental principle of all-round development of the State seems to remain a distant dream.

The revenue of the State does not seem to be good enough to undertake welfare measures. The budget does not propose any measures to make good the revenue deficit.

Though it is claimed that the common man’s interests are safe guarded, there are no positive steps to check the rise in price of essential commodities.

Strict austerity measures and steps to garner revenue remain mere promises. A majority of our political leaders are not concerned about the increasing debts of the State.

Captain. O.B. Nair

Poonithura

A cursory look at the State’s budget for 2008 makes a layman happy. But a deep study will reveal the opposite. While some proposals are meant to benefit the weaker sections of society, the aspirations of the middle class have been overlooked. The Minister should see that the welfare measures proposed reaches the beneficiaries. There are also not many infrastructure projects proposed in the budget. Also, a major share of the revenue is spent as salaries to government employees. But there is no concrete proposal to increase the efficiency or productivity in this sphere.

Ambalath Aboobakar

Thrissur

The budget has brought in some sort of hope to the State’s economic sector in spite of its shortcomings. The financial assistance to government colleges, including professional institutions, is commendable.

The funds should be put to proper use. The package for KSRTC is also a welcome step as it would help the public carrier out of the red. But, the budget provides nothing to the thousands of expatriates. These people who leave the country to eke out a living form the backbone of the State’s economy.

It is unfortunate that the common man, who is under pressure due to the rise in price of essential commodities, already suffering under heavy price rise, will have to bear an additional 1 per cent cess on VAT and sales tax.

The total debt amount is alarming. Figures tell us that each of us have a debt of around Rs.20,000. The budget has some eco-friendly suggestions like an increase in the price of plastic carry bags.

The cost of paper bags would come down.

Anyhow, the government has given a prudent budget by earmarking good sums for the health and welfare sectors.

Krishna K.

Kochi

In the State budget for 2008-09 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

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

There is no such entity as ‘common man’ anymore — there are only pressure groups. Traders, industrialists, farmers, government workers constitute some of these groups. It is immensely challenging, in this backdrop, to create a public document like the budget which has to consider all the groups’ interests.

Devraj Sambasivan

Alappuzha

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