THIRUVANANTHAPURAM: Kerala has asked the Central Government to provide survival assistance in the Union Budget to overcome Covid recession. In a petition to the Central Government, Minister KN Balagopal also demanded that a special economic package be sanctioned for the state.

"The GST compensation system should continue for another five years. Compensation arrears should be made available. The loss to the state in the central tax share should be compensated. The share, which was 3.92 per cent in the eighties, is now 1.925 per cent. There is a revenue loss of Rs 6400 crore in 2020-21 alone. A special financial package should be allowed to address this. The central share of centralized schemes should be increased".

"Loan limits should be made unconditional as the rate is declining by a quarter of a percentage point per annum and will reach 3% by 2025–26. Loans from development agencies should be exempted from the loan limit for a period of three years".

"Cess and surcharge, which are part of GST and petroleum tax, should be withdrawn. Cess and surcharge are higher than the basic tax on petrol and diesel. Central support and assistance should be ensured for projects, including K Rail, which are being jointly undertaken by the State and the Ministry of Railways. Market loans for large infrastructure projects should be exempted from the Financial Liability Act. A special package is required for returning expatriates".

"Special aid is required for agriculture, small scale industries and cash crops including cashew, coir, coffee, rubber, cardamom and tea. The special regional assistance of Rs 1100 crore recommended by the Finance Commission for Kerala should be sanctioned. Assistance should be provided for the Ayyankali Urban Employment Guarantee Scheme. Labour days and wages should be increased. Kerala has once again raised the demand for support price for rubber, and the inclusion of AIIMS, Ayurveda Research Institute in Kannur and Malabar Cancer Center in the Rashtriya Arogya Nidhi.