Minister KN Balagopal to present state budget on Monday; more benefits likely to be announced in wake of Lok Sabha polls

THIRUVANANTHAPURAM: Although the state is facing a severe financial crisis, with the Lok Sabha elections around the corner, people are expecting that more benefits will be announced in the state budget to be presented on Monday. People had suffered a heavy blow when property tax, stamp duty and vehicle tax were increased and a cess of Rs 2 per litre was imposed on petrol and diesel in the last year's budget.

This will be the fourth budget of Finance Minister KN Balagopal. The minister is under pressure as the state's revenue has decreased by around Rs 57,000 crore due to the severe restrictions imposed by the central government. The government was not able to properly implement many of the announcements made in the previous budget.

It has been alleged that even though the tax revenue has increased, there is more tax to be collected. The government is not slashing its expenditure. There is also a suggestion that without wasting time arguing with the central government, the state needs to take steps to get what it deserves.

Expectations

• Decision on 6 instalments of DA arrears
• NPS Pension Policy
• Pay Revision Commission announcement
• Increase in welfare pension by Rs 100
• Increase in support price for rubber
• VAT arrears elimination programme
• Benefit for start-ups and non-resident industries
• More private investment in the tourism sector
• More IT parks, stimulus packages

Expected tough decisions

• Double pension may be stopped
• Hike in certain service charges
• Tax or cess can be increased on alcohol
• Hike in land tax and fair value
• Petrol and diesel cess likely to continue
• Tax hike on uninhabited house and compound
• E-way bills may be made mandatory

There won't be heavy burden on people
Finance Minister KN Balagopal said that even though the budget is in the time of financial crisis, it will not be a big burden to the people.