KOCHI: The new budget lays the foundation for the formulation of Kerala's development policy in line with the rapid changes taking place in the political, social and financial sectors. Even though the election season is approaching, special tricks were not used to gain popularity. Instead, the emphasis was placed on moving forward with a sense of reality, involving all sections of the people.

The budget, which presents a roadmap for long-term development, did not significantly increase fees or surcharges despite some tax collection possibilities. It stimulates the domestic market by reducing the fiscal deficit and increasing capital expenditure. It also emphasized on infrastructure development. Rs 2,000 crore will reach the market with the payment of DA arrears to government employees and pensioners.

The main drawback of the budget is that there are no big announcements that would excite the market. While there are possibilities for raising money in non-tax revenue areas, such thoughts were not made. There was no attempt to utilize the financial market in India, which opens up vast opportunities. Since many public-private partnership projects have been launched, there was a suitable situation for public sector companies in Kerala to list on the stock market and raise money.

The budget states that Kerala has started seriously discussing the consequences of the decline in the birth rate and the increase in the number of elderly people. The situation of the new generation leaving the state in search of education and employment is also pointed out as a major challenge.

Youth should be kept in Kerala

The birth rate in Kerala is declining sharply. 5.34 lakh children were born in 2014. This fell to 3.48 lakh in 2024. The Finance Minister says that efforts should be made to keep the youth in Kerala. Immigration carried out without understanding the employment and educational conditions abroad is creating many problems. Awareness programs will be organized in collaboration with career guidance institutions in the education sector.

World Kerala Center

It is proposed to establish World Kerala Centers to strengthen the ties between the expatriates and Kerala. The Tourism Department will provide incentives to expatriate organizations to organize tourism programs in their homeland, involving their members and family members. The Finance Minister clarified that the scheme will enable them to buy and rent housing in their homeland and to set up assisted living facilities for the elderly. Five crores have been allocated for this.

Planning for Urbanization

The budget also initiates preparations in view of increasing urbanization. It is expected that 70 percent of Kerala's population will be urban dwellers by 2031. The urban population ratio was only 25.96 percent in 2001. The effort is to increase urbanization growth through planning. Metropolitan Planning Committees will be formed for the development of the cities of Kochi, Thiruvananthapuram and Kozhikode.