Kerala Budget Explained: What is in store for Non-Resident Keralites?

Kerala Finance Minister Thomas Isaac on Friday said that the state government has increased the allocation of funds for Non-Resident Keralites (NRK) to Rs 90 crore in 2020-21 fiscal from Rs 30 crores last year. An additional Rs 36 crores was spent above the budgetary allocation for expats last fiscal.

"While the previous government spent only Rs 82 crores for NRK welfare, this government spent Rs 152 crores for the community so far," he said.

The various schemes for NRIs include Santhwanam(Rs 27 crores), the distress relief scheme intended to provide time-bound support to returnee emigrants; NDPREM, fund for Rehabilitation of Return Emigrants; Emergency Ambulance Service for conveyance of sick Keralites returning home or mortal remains of deceased Keralites from foreign countries; Pravasi Legal Aid and NORKA Business Facilitation Centre.

The expats can avail insurance along with chitty funds henceforth. The government also allotted 5 acres for the Garden of Life scheme meant to rehabilitate elderly living with expat families.

Some of the new initiatives highlighted in the Economic Review and Budget under the NORKA includes scholarship programme for higher eduction of NRI children, language training of Keralite nurses for employment abroad (Rs 5 crores), techical skill development (Rs 2 crores) and an employment scheme for returning emigrants.

The Finance Minister's pet project – Kerala Infrastructure Investment Fund (KIIFB) - which has the potential to finance the state, banks on expatriates as the main source of funds.

NRK deposits are a major source of income for the state. The state received Rs 1,90,055 crore in deposits in 2019-20. This was an increase of 11.83 per cent compared to the 2018-19 fiscal. The NRK deposits constitute 38.5 per cent of the total deposits, according to the State Level Bankers' Committee (SLBC) data.

Public sector banks received 49 per cent, while private sector banks accounted for 49 per cent of the deposits. Among the public sector commercial banks, State Bank of India has the highest NRK deposit base of Rs 56,987.47 crore.

Malappuram District has the highest number of expatriates (4.06 lakh), followed by Kannur (2.49 lakh), Thrissur (2.41lakh) and Kollam (2.40 lakh).

Important announcements

Rehabilitation of expatriate returnees

• Rs 27 crore for the Santhwanam Scheme.

• Rs 9 crore for Pravasi Kshema Nidhi.

• Rs 18 crore for giving interest subsidy for 4 years and capital subsidy to small scale entrepreneurs.

• Care Home or Garden of Life Project is a scheme meant for ensuring the usually available facilities to the old age members of Malayalee families settled abroad. NORKA will provide 5 acres of land to the company formed for this purpose being the share of the first unit.

• Rs 2 crore for NORKA Business Facilitation Centre.

Foreign employment to be promoted

• Rs 5 crore for conducting crash finishing course to 10,000 nurses for overseas employment. The finishing school will include various foreign language training, certification of language proficiency as stipulated by each country, technical refreshment programme, IT skills and soft skills. This project will be implemented through Community Skill Parks of ASAP, the skill development initiative of Higher Education Department.

Assistance programme for expatriates

• Rs 3 crore for Pravasi Legal Aid Cell, Awareness campaign andfor providing 24 hour helpline.

• Rs 2 crore for financial assistance to Pravasi organizations.

• Rs 1.5 crore for airport evacuation and airport ambulance.

• Rs 3 crore is allocated to Malayalam Mission for starting on-line malayalam learning

• Rs 12 crore for Loka Kerala Sabha and Loka Samskarika Mela.

•Two important schemes initiated for the welfare and financial prudence of the expatriates are Pravasi Chitty and Pravasi Dividend. Both the schemes will be fully operational in 2020-21.

• Government will guarantee a monthly dividend of 10 per cent with subsidy for investment In the Pravasi Dividend Scheme .

• In Pravasi Chits, along with all the benefits of chits, expatriates will be ensured the benefits of pension and insurance as well. Expatriate Malayalees can sponsor projects in Kerala. Incentives will be made available to expatriate organisations for charity in Kerala.

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