Thiruvananthapuram: Confusion prevailed over the allocation of Rs 8,900 crore as part of the stimulus package announced by Kerala Finance Minister K N Balagopal in the Budget presented on Friday. Though there was an impression that the amount was meant for direct beneficiary transfer of money to those who have lost their livelihood and income due to the spread of COVID-19 and subsequent lockdown, it was not the case.
The finance minister in his speech gave an impression that the money will be disbursed to those with no means of livelihood and income.
The minister later clarified that the money will not be deposited to individual bank accounts, but the government will ensure that the money reaches the beneficiaries. He made the clarification at a news conference, while responding to a specific question on the possibility of each beneficiary receiving up to Rs 20,000.
Explaining, Balagopal said the intention was to make sure that the Rs 8,900 crore reached society. The government has been spending Rs 1,740 on free food kits. An amount of Rs 1,100 crore has been set aside to provide aid to those outside the welfare schemes.
The government will also ensure that people are paid through the employment guarantee scheme. Though it's a central government scheme, Kerala has been providing more work days than other states. The Rs 8,900 crore package also included the dues of contractors.
The money, reaching the people, will rejuvenate the market, the minister said.
New tax proposals in the pipeline
On the Budget avoiding any increases in taxes, Balagopal said new taxes will have to be introduced in future. Proposals to increase taxes were not included keeping in mind the pandemic situation.
Several businesses have been remaining closed, and COVID-19 has already overwhelmed the people. Considering the scenario, the government decided against placing an additional burden on the people by making new tax proposals.
Taking a dig at the media for reports of possible tax proposals in the Budget, Balagopal said it pointed at their creative bend of mind.
Stressing on the need for strict austerity measures, the finance minister said it will be implemented without causing difficulty to the people.
Balagopal said the contributions to the Chief Minister’s Disaster Relief Fund as part of the ‘Vaccine Challenge’ will not be diverted to any other purpose. The State will also utilize the funds from the Finance Commission to distribute vaccines.
The minister said no proposals that were made in the previous Budget have been dropped. Additions have been made, he said. With the introduction of the GST regime, the Centre has been choking the state, Balagopal said.
