Welfare pension not increased, land tax increased by 50%; no salary revision; highlights of Kerala budget 2025

THIRUVANANTHAPURAM: The last full budget of the second Pinarayi government has emphasized the development of tomorrow and investment for it, instead of the usual popular welfare line. Although much expected, there is no increase in welfare pension. No new benefits have been announced for backward and Dalit groups.

Meanwhile, land tax has been increased by 50 percent. Tax on e-vehicles has also been increased. 750 crores have been allocated for the rehabilitation of Wayanad. 2063 crores have been allocated to prevent price hikes, but there is no package for Supplyco for market intervention.

The last instalment of pension reform arrears of Rs 600 crore will be paid this month. Two instalments of salary reform arrears will be merged with PF. One instalment of the employees' dearness allowance will be paid in the April salary. The lock-in period of two instalments of DA arrears will be waived. However, there is silence on salary reform. Finance Minister K.N. Balagopal added that the implementation of the assured pension introduced by the Centre in place of contributory pension will be studied.

The Finance Minister has brought six investment projects in the budget this time to save Kerala from the financial crisis. Rs 1895 crore has been allocated for this. The investment projects include a development triangle linked to the Vizhinjam port. The initial steps of the Thiruvananthapuram Metro Rail will begin this year.

The Finance Minister began his 2.28-hour-long budget speech by sharing the good news that the severity of the economic crisis the state of Kerala is facing has eased. However, there was no explanation as to how. The three-month arrears of welfare pension will be paid on time. Unoccupied houses will be utilized for tourism. The project is called K-Homes. Vizhinjam will be made a major transshipment port. An industrial corridor will be developed connecting Vizhinjam. Land will be acquired every 25 kilometers of the coastal road for development projects. Click portal for land for industries. World Kerala centres will be started for expatriates to promote ties with Kerala. Five crore rupees have been allocated for this. Kochi Metro will be developed. Efforts for a high-speed rail line will continue. Vehicles involved in tax evasion will be confiscated. The Finance Minister also indicated that the move to impose tolls on Brewery and KIIFB roads will continue. One lakh houses will be built in the LIFE scheme.

1895 crore 6 development projects

• 1000 crore Vishnujam - Kollam-Punalur development triangle
• 500 crore West Coast Canal economic development
• Thiruvananthapuram Outer Area Development Corridor
• 2 crore global capability Centers
• 293 crore IT park
• 100 crore IT corridor

Additional tax proposals

• Additional revenue of Rs 150 crore by increasing fees for court fees, arbitration, land acquisition reference and public interest litigation
• Additional revenue of Rs 100 crore by increasing land tax by 50 percent
• One-time settlement to collect lease arrears of government land. Additional revenue of Rs 436 crore.
• Motor vehicle tax for contract carriages and stage carriers will be unified. 15 crore additional revenue
• 30 crore additional revenue by increasing tax on electric four-wheelers
• One-time settlement for three months to collect GST tax arrears
• One-time settlement scheme for GST supplies for which flood cess has not been paid
• Settlement scheme to settle distillery turnover tax arrears of bars till December 2022
• Filing fee slab for registering Gahans created by cooperative banks will be revised. 15 crore additional revenue

The budget contains things that give hope for the future

-Finance Minister K.N. Balagopal