Monday, July 11, 2016

A Very Good Budget for Kerala Given the Constraints


The Budget for the year 2016-17 is really good given the constraints. Why is it so? There has been marked deviation from stereotypical expenses that would or never have made marked improvement in the overall pathetic shape of the Kerala economy or for the common man. Though highly visionary it still gives ample room for the economy to improve rapidly. The very idea of mooting a mammoth infrastructure fund is the real game changer in the budget and quite noteworthy. If well implemented then this could begin a unique mobilization scheme so that many worthy projects could see daylight.
Kerala is paradoxically a place of rich individuals and extremely poor exchequer and this would surely go away if the Kerala Infrastructure Investment Fund Board (KIIFB) is formed with the necessary legislation being carried out. It is highly ambitious and undoubtedly would serve if it is well implemented and given the mandate of the LDF in Kerala it ought to be so.
One should give kudos to Dr. Thomas Isaac (Finance Minister) for this novel idea and especially allocating taxes from the Kerala Motor Vehicles Act. This is indeed a bold step and coming from leftist party with visible conservatism till its last reign this is the luminous spotlight of the budget. Even though the allocation may be only 10% initially and then gradually strengthened so that even 50% of the taxes could be allocated is something that few finance ministers in the country could even think of.
The best thing about this huge fund would be that it would also benefit the tourism to develop beyond the budgeted allocation and so would large projects like hydro electricity and renewable energy resources could be tapped.
There is something shining in this budget after all and should create hope among all Keralites.





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