KOCHI: State budget for the 2019-20 fiscal year will be presented by finance minister Dr. T.M. Thomas Isaac on Thursday. The budget most likely will prioritize rebuilding flood hit Kerala, although it might still feature welfare projects as Lok Sabha election is in the horizon.

Levying of one percent calamity cess over GST will be announced tomorrow. This will be for two years and most likely will take effect on April 1. Additional income of Rs 1000 crores is expected through this.

Additional cess will be levied on products with 12 to 28 percentage GST. Cess might be imposed on television, refrigerator, air conditioner, cement, and other luxury products. Usually, cess is imposed over tax money. But finance minister has made it clear that calamity cess will be imposed over the cost of the product.

With the upcoming election in mind, daily life products will be avoided from cess. Gold, an item with three percentage GST, might be imposed with calamity cess.

A package worth at least Rs 4000 crores will be announced for rebuilding the state hit by floods.

A health insurance plan that follows the ‘Karunya lottery’ model might be announced. Women, farmers, education, tourism etc. might be prioritized in the budget. Welfare pension might be increased by Rs. 100.
This is going to be the tenth budget presented by Dr. T.M. Thomas Isaac.