THIRUVANANTHAPURAM: A medical innovation park will be implemented in the capital city, said Finance Minister K N Balagopal while presenting the budget for 2022-23 financial year in the assembly. Rs 2 crore has been earmarked in the state budget for World Peace Meet. A crisis in the finance sector has not ended, the minister said. The minister was presenting the first budget of the second Pinarayi Government.
Measures may be taken in the budget to increase tax and non-tax revenue. The finance minister has indicated that restrictions will be tightened to reduce expenditure. Taxes may be increased on liquor and vehicles, which generate the most tax revenue. Allocations for welfare schemes may also decline in the wake of the financial crisis.
Raising fees for government services, land taxes and the fair value of land are also under consideration. It is estimated that after the implementation of GST, the state's tax revenue is declining by about Rs 20,000 crore every year. It is expected that the Centre will pay GST compensation this year as well.
The bigger challenge is to raise revenue rather than reduce costs. Revenue plummeted during the floods and Covid time. Costs soared. The goal is to bridge this gap. The emphasis will be on awakening including in the manufacturing sector.
This is Balagopal’s first full budget presentation. The family of the minister has reached the assembly to watch his budget presentation.