Kerala Budget: Rs.20,000 Cr for Infrastructure; hikes Motor vehicle tax

Kerala Budget: Rs.20,000 Cr for Infrastructure; hikes Motor vehicle tax

Agency News

Thiruvananthapuram: Kerala Finance Minister Thomas Isaac has allocated Rs 20,000 crore for the infrastructure development work in the Budget 2020-21 which he was presented on Friday.

He said that the infrastructure development will be carried out under the Kerala Infrastructure and Investment Fund Board (KIIFB). Budget also proposes a tax hike of 2% on new two wheelers above ₹2 lakhs and cars above ₹15 lakhs.

With a little more than a year left in office, the present LDF government has already surpassed the total allocation made by the previous UDF during its five-year tenure, he said.

Earlier, Isaac began his budget speech by highlighting the protests across the country in the wake of the enactment of the Citizenship Amendment Act (CAA) by Parliament.

He also set aside Rs 1,000 crore for coastal area development, Rs 1,500 crore for the public works department, Rs 1,000 crore has been allotted for village road projects and Rs 4,383 crore for drinking water projects in the state.

"The government proposes 2.5 lakh water connections in the upcoming financial year. We will also construct one lakh houses under Life Mission," the finance minister said.

The budget has allocated Rs 90 crore for Pravasi Welfare Fund and the government proposes power projects with a capacity of 500 MW.

"The government proposes Kochi development plan with a fund of Rs 6,000 crore. The city will get an unified travel card and Metro project will be extended," Issac said.

The state government has increased all welfare pension funds by Rs 100, allotted Rs 40 crore to paddy farmers and Rs 10 crore for startups in the state.

The local self-governments have been allotted Rs five crore for waste management, Rs 20 crore has been set apart for 1,000 food stalls under hunger-free Kerala, where meals will be made available at Rs 25.

The state government also hiked welfare pensions by Rs 100 and taking it to Rs 1,300, apart from announcements like setting up 1,000 new eateries operated by women self-help group Kudumbahsree that would offer a meal at Rs 25 and starting 200 Kerala Chicken outlets offering poultry products at reduced rates.