Kerala Budget 2024-25: Focus on Tourism, Infrastructure and Addressing Financial Challenges
Thiruvananthapuram, Kerala – – Kerala Finance Minister K.N. Balagopal presented the state budget for the fiscal year 2024-25, outlining a series of initiatives aimed at boosting economic growth, attracting investment, and addressing ongoing financial difficulties. The budget proposals come as Chief Minister Pinarayi Vijayan’s administration faces scrutiny over the state’s economic situation.
The Gross State Domestic Product (GSDP) of Kerala is projected to reach ₹13,11,437 crore for 2024-25, representing a growth of 11.7% over the previous fiscal year, according to analysis from PRS Legislative Research.
Infrastructure Development a Key Priority
A significant portion of the budget is allocated to infrastructure projects. ₹1,000 crore has been earmarked for land acquisition for the development of various IT parks, and a further ₹1,000 crore will be used to establish four new science parks across the state. Four new IT corridors will be developed parallel to National Highway 66, alongside new IT parks in Kannur and Kollam. Basic infrastructure development in the IT sector will receive ₹100 crore.
The budget also prioritizes transportation infrastructure. ₹1207.23 crore is allocated for the development of roads and bridges. The Silverline semi high-speed rail project will receive ₹2,000 crore, while the proposed outer ring road project in Thiruvananthapuram will get ₹1,000 crore for land acquisition. ₹239 crore is earmarked for the second phase of development works for the Kochi Metro. ₹9.65 crore will be used to develop the Malabar International Port, intended to benefit both North Kerala and South Karnataka.
Housing initiatives under the Life Mission will receive ₹1771 crore, and ₹1600 crore is allocated for various works under the Rebuild Kerala Initiative. ₹100 crore is budgeted for basic infrastructure projects in Kuttanad, and ₹200 crore each will be allocated to address traffic congestion at the 20 busiest junctions and construct six bypass roads.
Boosting Tourism and Employment
The budget places a strong emphasis on tourism, with plans to attract investments of ₹5000 crore towards the industry. Steps will be taken to develop 20 destinations, with the initial phase focusing on Varkala, Kollam, Munroe Thuruth, Alappuzha, Munnar, Fort Kochi, Ponnani, Beypore, Kozhikode, and Bekal. ₹50 crore is allocated to boost tourism at these locations.
Recognizing the need for employment opportunities, the budget includes ₹25 crore for the NoRKA Department Project for Returned Emigrants, designed to assist returnees in finding livelihoods. An additional ₹44 crore has been set aside for restoration programs related to this initiative.
The state also aims to create 50,000 direct employment opportunities, with ₹100 crore allocated in the budget to support this goal. A new task force of Pravasi (non-resident Keralite) academic experts will be formed to improve the quality of higher education, with expert meetings planned in Europe, the US, Singapore, and the Middle East in May and June.
Revenue Generation Measures
To bolster state revenue, the budget proposes an increase in the gallonage fee on Indian Made Foreign Liquor by ₹10 per litre, which is expected to generate an additional ₹200 crore. A scrapping policy for old cars and furniture will be implemented in government offices, with an estimated revenue of ₹200 crore.
Addressing Agricultural Needs
The agricultural sector will receive attention with ₹500 crore set aside for rubber subsidies. Agri-tech facilities will be established in all districts at a cost of ₹175 crore, and ₹30 crore is allocated for Cooperative Initiatives in Technology-driven Agriculture. The Kerala Climate Resilient Agri Value Chain Modernization Project will also be launched.
Health and Other Allocations
The Karunya Arogya Suraksha Padhathi, the state’s health insurance plan, will receive an allocation of ₹678.54 crore. A pilot project to launch stem cell therapy in Government Medical College, Kottayam, is budgeted at ₹1.5 crore. A pre-production centre for graphene-based materials will be established in Ottapalam.
The budget also includes ₹3 crore to enhance the activities and modernize infrastructure of the state tax department, aiming to boost revenue income. ₹4 crore is allocated for general awareness programs and capacity development related to goods and services tax.
Recent reports suggest concerns regarding central government allocation to Kerala, with discussions of a special resolution to be presented in the state legislative assembly to address this issue.
