Even if Kerala finance minister T M Thomas Isaac implements 75 per cent of the recommendations of his ambitious budget, it will be a boost to the ruling Left Democratic Front in next year’s assembly election. If the implementation rate goes below 50 per cent, the opposition would weaponise it in the election. The ruling front will have to face stiff opposition from its own unions if it were to go ahead with the proposals ranging from cost cuts to reallocation of personnel.
The finance minister’s dexterity was on display in plans from plugging the leakage of welfare pensions to increasing the fair price on land. At the same time, these measures could dent the popularity of Isaac. He could still argue that the people should bear with the difficulties in difficult times. The increase of fair price by 10 per cent would keep it closer to market prices. The proposal to increase the land price up to 30 per cent in project areas is also logical, but unpopular.
Isaac has said that most of the projects announced in the budget would be launched by March but we would do well in looking at the projects promised in last year’s budget.
The plan to inaugurate the Kovalam-Bakel project in 2021 may be a little too ambitious. Even Isaac knows that his allocation, both in terms of money and manpower, for the Kovalam-Kollam route is grossly overestimated. The government is yet to clean up a smaller waterway such as Parvathi Puthanar in Thiruvananthapuram.
Even as the government boasts of Rs 54,000 crore through the Kerala Infrastructure Investment Fund Board (KIIFB), the prospect of the repayment of funds adds to the worries. The cornerstone in the repayment strategy are vehicle tax and petrol cess. At the same time, the government is providing incentives for electric vehicles. A switch away from petrol-run vehicles will dent revenue from petrol cess. All these could have an impact on the source of KIIFB revenue.
The governments shouldered with the responsibility to repay the debts may hold Isaac responsible for their plight. Let us wish such a situation never arises.
(The writer is a former member of the Kerala Planning Board)
