image

25 Jan 2024 9:46 AM GMT

State Government

Rs 13,600 crore (23.4% ) rise in State's tax revenue, alcohol tax contributes only 4 % of kitty

TVM Bureau

rs 13,600  crore (23.4% ) rise in  states tax  revenue, alcohol tax contributes only 4 % of total  kitty
X

Summary

Kerala witnessed a decline in it's share of taxes devolved by the Union Government from 3.88 per cent during the 10th Finance Commission period (1995-2000) to a mere 1.92 per cent during the 15th Finance Commission period (2021-2026).


Thiruvananthapuram: In his annual cutomary policy address to the State Assembly on Thursday, Governor Mohammed Arif Khan said that , that only 3.7 per cent of `` his government's'' own tax revenue comes from alcohol, which is one of the lowest percentages among all states, contrasting with those where it can be as high as 22 per cent.

The goverment raised own tax revenues amounting to Rs. 71,968 Crores, marking an increase of nearly Rs. 13,600 Crores, or 23.4% from the previous year. According to the Reserve Bank of India, Kerala is among the top performers in revenue mobilization efforts. It is noteworthy that the percentage of own tax revenue that comes from alcohol in Kerala (3.7%) is amongst the lowest of all States and compares very favourably with States where the percentage is as high as 22%, Khan said.

"According to the Reserve Bank of India, Kerala is among the top performers in revenue mobilisation efforts," the policy document said.

``My Government places the considered opinion before the Union Government that Kerala should be ensured it's well deserved share in the distribution of taxes. My Government views with concern the holding back of eligible grants and share of assistance in Centrally Sponsored Schemes.'' Khan added.

"My Government is put to added liquidity stress because of the retrospective cut in borrowing limits, which is not in accordance with the accepted recommendations of the 15th Finance Commission. This stand of the Union Government needs an early reconsideration," reads the document, copies of which were distributed to the media after the Governor's brief address.

In the document, the Governor said his government's stupendous achievements have come about despite many formidable challenges confronting it.

"Paramount among these is the liquidity stress stemming from the vertical imbalance between the Union and the States in fiscal matters," it said.

The document said the fact that the Union possesses a significantly greater capacity to mobilise resources compared to the states, while the states are mandated to undertake developmental expenditures that far surpass their revenue generating capabilities points to a great asymmetry within India's federal system.

"Over time, this has further intensified, constraining the fiscal position of the states," it said.

Noting that the consistent decline in the awards of the successive Finance Commissions serves as a compelling case in point, the document said Kerala witnessed a decline in it's share of taxes devolved by the Union Government from 3.88 per cent during the 10th Finance Commission period (1995-2000) to a mere 1.92 per cent during the 15th Finance Commission period (2021-2026).

"In 2023-24, the discontinuation of GST compensation, a reduction in revenue deficit grant, and restrictions imposed on off-budget borrowings of the State by the Union exacerbated the fiscal condition of the State.

"The State has been constrained to approach the Hon'ble Supreme Court for a solution to the financial impasse thrust on the State", it said.

The document, however, said despite grappling with these formidable challenges, the state government remained steadfastly committed to infrastructure development and growth focused on a knowledge economy, along with sustained social security spending, the hallmark of the Kerala Model of Development.

Talking about the measures taken by the government on achieving fiscal consolidation on one hand and enhancing domestic revenue mobilisation on the other, it said in 2022-23, the state government successfully raised own tax revenues amounting to Rs 71,968 crore, marking an increase of nearly Rs 13,600 crore, or 23.4 per cent from the previous year.

The government claims that under Punargeham project the entire population residing within 50 meters from the high tide line will be relocated to safer places.. Notably, 3,917 families have already been relocated accommodated in 3,527 houses and 390 flats.

Through the Haritha Karma Senas, 36,000 jobs have been created in the waste management sector for women. It will make the State waste free by March, 2024.


Thw Government has formed the Kerala Agro Business Company (KABCo) on the lines of the CIAL to champion the marketing aand value addition of agricultural products.

The Government aims to transform 50000 hectares of land in the State into thriving organic farms within the next five years, with a yearly target of 10000 hectares. The mission focuses on the 15 certification, branding and marketing of organic agricultural products from Kerala. ``My Government also introduced the Poshaka Samriddhi Mission with an aim to cultivate nutritionally important crops on Agro Ecological Zone basis. The Missiontarget is to bring 75 lakh families to nutritional diet in 3 years''

The Government has unveiled the brand “Keralagro” under which over 1000 value-added farm products from the State will go online across major e-commerce platforms, enhancing the global trust, recognition and accessibility of Kerala‟s farm produce.

The Krishikoottams formed as part of the people‟s campaign “Njangalum Krishiyilekk” will be strengthened and 3 lakh employment opportunities will be created through 30000 Krishikoottams.

Kerala ranks second in the country in milk productivity and will achieve self-sufficiency in milk production within the next year, according to data released by the Union Ministry of Animal Husbandry and Dairying in 2023.

Kerala Co-operative Milk Marketing Federation‟s (MILMA), Malabar union produces the best quality milk in the country,

In order to combat the Foot and Mouth Disease, the Government has embarked on a comprehensive vaccination campaign covering 12 lakh eligible cattle. Under the Rebuild Kerala Initiative, the Government is launching Mobile Veterinary Units in all blocks.

Kerala Bank has earned the distinction of being the largest Co-operative Institution in Asia and the seventh largest globally (based on Turnover/GDP per capita) in the financial services sector, according to the World Co-operative Monitor Report. The bank has been recognised as the best State Co-operative Bank in the country for three consecutive years (2019-20) by the National Federation of State Co-operative Banks (NAFSC

Muttathe Mulla Scheme, designed to liberate rural households from the clutches of private moneylenders, successfully disbursed loans worth Rs. 547.16 Crores to low income groups, labourers, small traders etc. Similarly, the Snehatheeram scheme provided fixed term loans at very low interest rates to people in coastal areas. In the next financial year, a Co-operative Revival Fund Scheme will be established for the rehabilitation and revival of ailing, weak or defunct societies.

The Government introduced a new scheme for population based screening of NCD‟s( non-communicable disease) under Navakerala Karma Padhadhi-2 (Aardram Mission). This was done through the home visit by ASHA volunteers for capturing the risk assessment of all population above 30 years through an application called SHAILI developed by e-health. 87% of the target population (1.53 Crores) was subjected to survey and suspected patients were referred to the healthcare facilitiesfor confirmation. Screening for cancers were also done through the Family Health Centres by using SHAILI app and the clinical examinations were done through Cancer Care Suit developed by ehealth. The Government is committed to enhance this screening in the coming years also by developing SHAILI –II, where more diseases have been targeted along with provision for in-depth analysis of the data. In addition to the 105 hemo dialysis centres operational in the State; the Government also initiated a programme for peritoneal dialysis which is implemented in all 14 districts. The screening for diabetic retinopathy has been expanded to 172 institutions and SWASS clinics for COPD management has been expanded to over 500 institutions. The department has also initiated a comprehensive NCD management centre in the major hospitals named as ‘360 degree metabolic centres’ where the diseases and its complications are managed under one umbrella. The Government is also planning to start a healthy life campaign to promote healthy lifestyle in the community. Decentralized cancer care clinics are functional in 24 centres across the State, which provides chemotherapy and other essential services. Physiotherapy units have been functional in 227 Community Health Centers for palliative and rehabilitative chronic disease management.

. In the healthcare sector, under AYUSH, over 10 lakh inpatients and two crore outpatients were successfully treated. Kerala received the Ayushman Uthkirstata Award 2023 for the highest number of treatments under AB-PMJAY-KASP.

In Financial Year 2024-2025, the "Nerkazhcha" project proposes screening the entire population for eye diseases.

. The Government has introduced specialized initiatives like Manasikam for mental health, and the Sickle Cell Unit.

In Homoeopathy, projects such as Sradha for stroke management, Vimukthi for de-addiction, and disaster management training through ILDM have been initiated. The Government's future plans involve establishing 100-bedded hospitals, expanding health tourism schemes, and prioritizing Research and Development (R&D)

The main portions excluded by NCERT include Mughal History and Partition of India, Martyrdom of Mahatma Gandhi, Five Year Plan, Emergency, Popular Struggles in India,social conditions in India and caste system.Therefore, Kerala launched additional textbooks in humanities to ensure real historical and social awareness to the children. Six additional textbooks were released in four subjects.

The core focus of the Government in Education is on infrastructure development, including accessible toilets for differently-abled children and building 'Autism Parks' in schools. New initiativesfor 2024-25 include „Efficient Waste Management in Schools', 'Empowering Girls through MenstrualHygiene', and 'Support for extremely poor children'.

The Nodal Centre for Robotics & AI will be strengthened to become a Centre of Excellence in Artificial Intelligence.

ASAP Kerala plans to establish Centres of Excellence in 5G & Communication, Drone Technology, and Additive Manufacturing Procedures for granting permission to set up private universities will be initiated, and legislation in this regard is underway. Industry On Campus (IoC) is fostering collaboration between industry and academic institutions, leading to various commercial opportunities

The Government supports over 50 high-quality research projects in Science, Engineering, and Technology, along with the upgrading of science laboratories in Government schools. Anticipating the role of Science Parks in attracting high-end research and industries, the Government is investing 600 Crores in establishing three Science Parks. The Global Science Festival Kerala (GSFK), Asia's premier science exhibition, is underway.

The Supplyco's 245 K- stores are already established - this will go up to 2000 by the next year. "Operation Yellow" successfully prevented the misuse of NFSA cards, identifying 1,84,344 illegal cards. 3,66,397 priority cards were issued to the eligible obtained through Operation Yellow and Voluntary Surrender Scheme. In addition, the Government intends to distribute one lakh priority cards to the eligible by next year. The "Oppam" project, involving voluntary auto-rickshaw drivers, facilitated doorstep delivery of ration to eligible beneficiaries.

A new initiative called SUJALAM, to provide drinking water at Rs. 10 per litre through fair price shops, has been implemented in 5 districts and will be expanded to all districts. In order to ensure food security to all, the Government has issued Ration Rights Cards to guest workers so that each and every person residing in the State is covered under universal public distributio

The Kerala State Civil Supplies Corporation Ltd.(Supplyco) achieved a sales turnover of 3473.49 Crores, with a target of Rs. 5000 Crores for the fiscal year. Future Plans include introducing ERP software, online delivery, expanding the petroleum business, and establishing electric charging stations

The Government also pays the highest paddy procurement price among Indian States, with the procurement price for the current season at Rs.28.20/kg.