Kerala - Kochi   

State Budget to focus on food security, infrastructure, welfare measures

KOCHI: The forthcoming State budget proposals will lay emphasis on boosting construction activities in the State, strengthening steps to ensure food security and welfare measures for the economically backward people hit by the global meltdown, said Finance Minister T.M. Thomas Isaac here on Saturday.

“Constructing buildings, roads and allied infrastructure would have a multiplier effect on the economy, benefitting labourers and those engaged in trading activities. The State can increase investments by promoting more construction activities,” he said at a press meet, after an interaction with representatives of traders’ organisations. The budget will be presented on February 16 or 23. Referring to the emphasis worldwide on building infra-structure projects in the wake of the global meltdown, Dr. Isaac said this would result in more money being circulated in the economy. Aimed at ensuring food security, large tracts of land in the State are being brought under paddy cultivation.

“Over 10 lakh people in the State have been hit due to the fall in export of products manufactured by traditional industries. There has been a one-third drop in the export of coir products alone. Workers engaged in the sector are in urgent need of subsidised food, for which Kerala is willing to share a portion of the expenditure. Similarly, many workers employed in the Gulf countries have either lost their jobs or suffered cuts in their salary. Sadly, many people have lost faith in the public-distribution system, preferring to buy rice and other commodities from the open market.”

The Finance Minister said necessary measures would be announced in the budget proposals to overcome the situation arising out of the fall in income for the government. “There has been income shortfall of around Rs.700 crore this year. Revenue from stamp duty has also fallen. This fall in income can be substituted if the Centre permitted the State to take more loans. The Centre’s economic-stimulus package was silent on States’ share of the tax and other duties that the Centre collects. It has been urging States to cut down on spending, while at the same time speaking of expanding projects executed under it, he said.

The Minister termed the Centre’s economic stimulus package as one aimed at reducing the interest on loans. The automobile sector is in deep crisis due to banks’ reluctance to grant loans. Banks prefer to retain liquid cash. Semi-governmental organisations too should take loans to provide a stimulus to development.

A Kerala Local Development Fund would be set up for taking up socially-viable schemes. For example, places like Kochi need better roads, sanitation and open spaces, he said.

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