Budget
2004-2005
Budget
Speech
Sir,
I
rise to present the budget for the year 2004-2005.
2.
My budget heralds the fourth financial year of this Government.
I would like to place on record my gratitude to you Sir,
to our honourable Chief Minister, all my colleagues in the
Council of Ministers and all members of this august House
for your unstinted cooperation and valuable guidance and
solicit your continued support in future also.
3.
I am presenting this budget at a critical juncture in our
history. India is gearing itself up for yet another momentous
step in our democratic history. Our enlightened electorate
is preparing to make their electoral choices that would
decide the future of our great nation. But as we do so,
we painfully realise that our long cherished ideals of democracy
and secularism are under siege. We witness the ominous
sight of a hapless Government at the Centre held hostage
by the dark forces of communalism and fascism. We are made
to endure the ignoble sight of a Government that is indulging
in a dangerous game of creating communal cleavages in the
country - and all this with the sole aim of avariciously
clinging to power. We see them frenetically attempting
to disguise and camouflage fascist and communal perspectives
and endow them with a facade of respectability. Indeed
while these dark clouds cast their gloomy shadow over us,
it is positively heartening that secular forces are joining
hands to confront and thwart the sinister plans of these
divisive communal forces.
4.
The UDF Government has firmly stood for upholding the guiding
principles of secularism, communal harmony and social justice
for all. Our endeavour to usher in economic development,
modernisation and reform are rooted in these sacrosanct
principles. Indeed, the mandate in Thiruvalla reflects
the unequivocal affirmation of the people for Kerala for
Government’s efforts at development and good governance.
I can assert with pride in this august House that be it
any development sector, there is reason for optimism and
good cheer. The despondency that had gripped the State,
when the UDF Government came to power is now a thing of
the past. We have put those dreadful memories behind us.
Even the worst critics of this government concede that we
are closer than we have ever been in the last several decades,
in ushering in industrial and agricultural growth, exploiting
the advantages of IT to its fullest and deriving the maximum
advantage of the leap in higher education that we have taken.
All this has been built on the foundations of social justice
and equity that is at the core of Kerala’s unique development
experience. Naturally, disgruntled forces will try to hinder
our efforts, but against the steady progress that we are
making, such puerile attempts will be set at naught by the
people of Kerala. I once again take this opportunity to
reaffirm the commitment of the UDF Government to lead Kerala
ahead on the path of reforms and progress.
5.
Sir, as part of our fiscal reforms, Government had, in fact,
taken all steps to complete the budgetary process and get
the full budget for 2004-2005 passed before the end of this
financial year. However, the Union Government has signalled
its intention to advance the Parliamentary Elections and
this imposes a handicap on us. I am sure that honourable
members would expect to be preoccupied with these elections
in the coming months. Therefore, much as we would like
to, the compulsions of parliamentary democracy stand in
the way of implementing this measure now.
6.
Sir, we began on a bold promise - that we would salvage
the State from the deep ravines of despair and gloom that
the State had plunged into in 2001 - that we would put Kerala
on a track of growth, renewal and development. It would
only be appropriate that I devote some time to take stock
of our achievements in the last three financial years.
7.
It is with a tremendous sense of satisfaction that I would
like to inform the august House that, under the stewardship
of this Government, the economy of our State has achieved
a steady and encouraging buoyancy. In 2002-2003, the State
registered a significantly high growth rate of 6.1% in its
State Domestic Product - nearly 2% points above the national
growth rate for the same period. I expect the State to
sustain this impressive growth in 2004-2005 also. This
Government’s effort to build a climate conducive to investments
has paid very rich dividends. All of us can be really proud
that the Credit Deposit Ratio in the State has touched 52.4%
- the highest levels achieved in the last ten years with
a commendable 4% increase in just eighteen months. The
agricultural sector shows signs of a new vitality and prices
of most of our major agricultural crops are looking up.
In the case of a few of our crops, after a gap of several
years, farmers have finally begun to enjoy a modest prosperity.
Even with regard to the vexed problem of unemployment in
the State, we are indeed happy that the number of registered
job seekers has declined from 44.3 lakhs in 2001 to 38.6
lakhs in 2003.
8.
In line with my efforts to reform the State finances since
2001, my budget marks the next stage - to achieve, in the
next two years, a Kerala that would have moved further
ahead towards development, economic strength and social
justice.
9.
Reforms in Government have been based on the cardinal principle
of achieving a long-term, transparent, professionally managed
and prudent regime for the management of the State’s public
finances against the larger canvas of our development goals
and strategies. Let me remind you, that we have to address
the causes rather than the symptoms of the fiscal crisis
if we are to build the Kerala that we envision for ourselves
and our coming generations.
10.
I am confident that the XII Finance Commission will do justice
to a State like ours that had suffered due to the award
of the XI Finance Commission. The percentage of Kerala’s
share had come down from 3.5% under the X Finance Commission
award to 3.05% under the XI Finance Commission award. This
time, we have very painstakingly argued our case during
the visit of the Commission to Kerala in December, 2003.
11.
The Fiscal Responsibility Act 2003, which this House has
helped enact is a bold and epoch making step in the annals
of our public finances. I have to shoulder the exacting
responsibility of bringing down the fiscal deficit to 2%
of our State Domestic Product and balancing the Revenue
Budget by March 2007 while emphasising developmental spending.
12.
Sir, the august House approved the legislation for the Kerala
Ceiling on Government Guarantees Act 2003. Government and
its PSUs have to now prudently manage our needs for availing
loan funds within the constraints set by this Act. We will
be notifying a Guarantee Redemption Fund and its corpus
will be built primarily from Guarantee Commissions received
by Government. I expect to realise Rs 65 crore for the
Fund this year.
13.
Debt reduction will be a primary focus of our fiscal reforms.
The high cost debt accumulated in the past continues to
plague us. But I would like to inform this House, that
as part of our fiscal management measures we have availed
the debt swap scheme offered by Government of India to its
fullest and between 2002-2004 will have swapped nearly Rs.
1000 cr. of high cost debt. I hope that the XII Finance
Commission would come out with a comprehensive debt relief
scheme linked to a road map for fiscal correction. I intend
to set up a debt management cell in the Finance Department
to study and work out all possible options to carry out
debt swap and reduce the debt servicing costs.
14.
Sir, to bring in transparency into our financial operations
I am placing before this House, statements of disclosure
to comply with the requirements under the Fiscal Responsibility
Act. This will usher in a wider and informed debate on our
fiscal management.
15.
Government feels that for improving financial transparency
and accountability it is highly necessary to ensure that
announcements in the budget speeches are followed up systematically.
As part of steps for better financial management, Government
intends to constitute a High Level Committee that will specially
monitor all new schemes announced each year in the Budget
Speech and ensure that promises made before this august
House are implemented on a fast track mode,
16.
The Annual Plan has been fixed at an outlay of Rs. 4800
crore for 2004-05, the third year of the Tenth Five Year
Plan. This includes Rs. 1350 crore to be allotted to local
governments, and Rs. 1151 crore to schemes using external
assistance. The continuing focus of development through
the plan would be on basic reforms in the governance and
economic system to improve the quality of public services,
increase the returns from Government investments and facilitate
private investment. Broadly, the Plan seeks to enhance
the quality of human development and help us move ahead
on a path of pro-poor growth that implies more employment
opportunities in the State. In human development, the priority
is to address the second generation issues arising from
Kerala’s unique mode of development. In this task, government
would work hand in hand with local governments to avoid
overlaps and to achieve synergies.
17.
As part of improving the quality of planning, we intend
to switch over to a result based planning methodology and
as the first step four Departments – Animal Husbandry, Fisheries,
Health and Social Welfare – have prepared their Annual Plans
in this framework by clearly stating the justification of
each scheme, its objectives, the activities involved, the
timelines and the expected outputs and outcomes. This will
pave the way for higher efficiency, greater transparency
and accountability and more positive developmental outcomes.
18.
I would like to emphasise Government’s resolve to define
our development goals through consensus. ‘Vision 2025’
document will be brought out this year in consultation with
all sections of people.
19.
We have been very successful in tapping external assistance
during the Tenth Plan in sharp contrast to the performance
in the Ninth Plan when during the entire five year period
we could receive only a paltry amount of Rs. 295 crore constituting
just 0.8% of the total aid flow to the country. During
the coming year we hope to get an external assistance to
the tune of Rs. 1151 crore. The funds are to be spent basically
for modernizing government to make it more people friendly,
provide drinking water to the uncovered areas of the State,
improving critical communication infrastructure and reduction
of poverty.
20.
The Dutch Government has agreed to provide 5 million Euros
(Rs .25 crore) to make available high quality technical
assistance for the Modernising Government Programme (MGP)
and 1.5 million Euros (Rs. 7.5 crore) to strengthen decentralization.
The Swiss Government has already approved the second phase
of Capacity Building for Decentralization in Kerala Project
(Cap Deck) to the tune of Rs. 5.37 crore. ADB has agreed
to fund a project to the tune of $ 250 million (Rs. 1200
crore) for urban development projects to be taken up initially
in the five Municipal Corporations from the coming year.
I take this opportunity to inform you that we have sought
the assistance of the World Bank to provide long term support
to strengthen our local governments so that we can consolidate
and build on the gains of decentralization. The second
tranche of $ 125 million from ADB and the Government of
Netherlands for MGP and Fiscal Reforms is expected shortly.
21.
In keeping with the promise I made in my last budget, local
governments have been given funds in monthly installments.
They have been exempt from Treasury restrictions. The report
of the Second Finance Commission has been considered by
Government and detailed orders would be issued shortly.
In addition to the Plan grant of Rs. 1350 crore, I am glad
to set apart Rs. 205.32 crore as general purpose grant and
Rs. 325.79 crore as maintenance grant constituting 3.5%
and 5.5% of the State’s Own Tax revenues as recommended
by the Second Finance Commission. With this the fiscal decentralization
in the State is poised to become more mature and sound.
22.
The Kerala development project launched last year is expected
to bear fruit in 2004-05 when the major institutionalization
efforts are expected to be completed resulting in improved
financial and office management systems and enhanced capabilities
for developmental planning in local governments.
23.
Ensuring sustainable employment to people and reduction
of poverty remain the topmost priority of this Government.
All the development schemes formulated by Government reflect
this priority.
24.
In this budget, Government has formulated a special employment
package for Rs.127 crore for making available improved employment
opportunities in the industrial and agricultural sectors.
25.
As a momentous affirmation of Government’s resolve to mitigate
the problem of unemployment, I am happy to announce that
Government intends to place before this august House the
Employment Guarantee Scheme Bill in the coming year. This
scheme will assure a minimum guaranteed employment to all
households in backward areas that will be notified under
the legislation.
26.
Kudumbashree Poverty Eradication Mission has succeeded in
developing a viable model of poverty reduction through convergence
of anti-poverty programmes and through development of micro
enterprises which have a ready market. The Mission has
drawn up a well designed series of measures that comprise
extensive training, orientation and entrepreneurship development
programmes with technical training, providing subsidies
and working capital and ensuring market tie ups for 5000
new units that will open up jobs for 50,000 unemployed youth
in our State. I am providing Rs.50 crore for this bold
new employment generation scheme.
27.
It has now been generally accepted that a necessary strategy
to solve Kerala’s unemployment problem is through fuller
use of small agricultural land sites. 5000 Women Self Help
groups will be oriented to take up lease land agriculture.
The necessary legislative framework for encouraging landowners
to provide land for this purpose will be devised. This
scheme is expected to provide employment for as many as
50,000 youth and in addition contribute significantly to
agricultural growth. A productivity linked incentive for
cultivation will be offered to them. I am setting apart
Rs. 25 crore this year for this purpose.
28.
There has been a marked shift in the structure of Kerala’s
economy from the primary to the tertiary growth spheres
in the last few decades. In line with this trend, Government
will launch Job Clubs in all Districts with SC/ST entrepreneurs
who can derive gainful employment offering a range of on-call
services to consumers. I am providing Rs. 2 crore for this
novel venture.
29.
As announced in my last budget, the Traditional Industries
Support Fund will commence functioning this current year
itself with an initial corpus of Rs. 50 crore. A mission
group of experts will be constituted to formulate schemes
for creating new employment opportunities in the traditional
industries sector.
30.
Government intends to accord the highest priority for ‘Clean
Kerala Project’. The Project which was launched in the
current year is now being stepped up for implementation
through local governments on a mission mode. In order to
develop scientific solid waste management plans and implement
them Rs.1.27 crore is earmarked under two schemes. We are
confident that Local Self Governments, various Departments,
NGOs and educational institutions will join hands to make
this ambitious goal a reality. I am pleased to announce
an additional amount of Rs.10 crore for the Clean Kerala
Project. With this, I expect an amount of nearly Rs. 80
crore to be spent on the project in addition to the normal
outlays on sanitation and hygiene in the State.
31.
MGP and its fast track Service Delivery Project is poised
to take off in a big way this year. MGP seeks to bring
about a qualitatively significant improvement in the way
in which Government departments functions. Built on the
four pre-eminent principles of MGP viz. performance, accountability,
transparency and participation, the Service Delivery Project
will put these principles into practice in 3000 institutions
under key service delivery departments that serve the people
of Kerala particularly the poor. For the coming year, an
amount of Rs. 600 crore is set apart for various MGP schemes.
32.
Kerala is fast gaining ground in IT and will soon forge
ahead of other front runner States in this sector. Encouraged
by the success of the pioneering project, to bridge the
“digital divide” - ‘Akshaya’ in Malappuram, - Government
intends to replicate it in all other districts of the State.
I expect Rs. 25 crore to be invested in this project this
year inclusive of the provision I have made in the budget
and contributions from the local governments to create connectivity
and develop content,
33.
There is need for rapid development of high quality infrastructure
for IT industry in the State. Rs. 20 crore has been earmarked
for building up the IT Park in Kochi, enhancing the existing
Technopark at Karyavattom and for the proposed IT corridor
in Thiruvananthapuram. In addition to this, I am now pleased
to announce an amount of Rs.10 crore for these strategically
important projects.
34.
E-governance can take root only if it is implemented in
a systematic manner in critical departments that deliver
services to the public. Therefore Rs. 15 crore is set apart
for developing a knowledge-based decision support system
for e-governance.
35.
For successful e-governance the capacity of the staff needs
to be specially built up. I set apart Rs. 5 crore exclusively
for this purpose.
36.
In sum, Information Technology sector gets a significantly
increased allocation of Rs. 93.75 crore compared to Rs.
31.60 crore during the current year. This is in addition
to e-governance initiatives being implemented by departments
under their budget.
37.
Tourism development in Kerala is now another internationally
recognized development model unique to our State. With government
playing the role of a proactive facilitator, market explorer
and quality enforcer, our strategy in this sector has paid
rich dividends. Government intends to continue its priority
for tourism. I am allocating Rs. 74.25 crore to the sector
so that the Tourism Vision 2025 launched by the Government
would become a reality.
38.
For promotion of Kerala as a tourist destination as well
as an attractive destination for tourism related investment,
marketing is very important. Rs. 10 crore is provided for
this purpose. It is Kerala’s rich heritage that attracts
a large number of tourists to the State. Therefore for
conservation of our rich heritage I set apart Rs. 3.5 crore.
For tourism infrastructure I am glad to allot Rs. 47.39
crore of which Rs. 30 crore would be spent on key tourism
related infrastructure to be implemented through different
agencies. In addition to these, I am providing a token provision
of Rs. 10 lakhs for initial expenditure for the development
of ‘Pythal Mala” in Kannur as a tourism centre.
39.
The Global Investors’ Meet has succeeded in projecting Kerala
as a worthwhile investment destination. A fast track clearance
system has been put in place in the form of the Investment
Promotion Board. Proposals worth nearly Rs. 10000 crore
are in various stages of readiness for implementation.
KINFRA and KSIDC are continuing their efforts to draw more
investments into the State. I have set apart Rs. 25.70 crore
for KSIDC so that it can leverage more assistance to support
industrialization in the State. KINFRA would be given Rs.
10 crore to proceed with its major projects including the
Herbal Park in Wayanad and the Bio Technology Parks in Thiruvananthapuram
and Kochi.
40.
For continuing efforts to reform the State level public
enterprises Rs. 75 crore is earmarked. Specific proposals
would be approved by Government on the basis of the recommendations
of the Enterprise Reforms Committee and on the basis of
discussion with Trade Unions and other stakeholders. Government
would like to reiterate its stand before the august House
that under no circumstances will it disinvest any PSU that
is running on profit.
41.
In the coming year, a series of initiatives have been approved
for implementation, focusing on facilitation of private
investment, through simplification of procedures and restructuring
of the regulatory framework and encouraging and nurturing
the spirit of entrepreneurship. For this package of initiatives
I set apart Rs. 36 lakh. In order to reorient the functioning
of the District Industries Centres, Business Promotion Cells
would be set up for which Rs. 50 lakh is earmarked.
42.
In order to promote small-scale industries I set apart Rs.
1.20 crore for modernizing industrial estates and development
plots. I further set apart Rs. 30 lakh for forging industry
research linkages and another Rs. 30 lakh for technology
development.
43.
The State will give top priority to developing industrial
clusters by creation of common facility centres, quality
assurance, bulk sourcing of raw material and mutual credit
guarantee. Rs. 32 lakh is allotted for this innovative scheme.
44.
Recognizing the potential of agro based industries especially
food processing, I am earmarking Rs. 1 crore for developing
new products and promoting such industries in clusters.
45.
In addition to the large number of schemes of the Industries
Department, I am providing Rs.50 lakhs for the expansion
of MALCOTEX at Kuttipuram and Rs.50 lakhs for the development
of Priyadarshini Cooperative Spinning Mills, Kottayam.
46.
The traditional industries of Kerala which employ a large
number of people needs special efforts in our development
strategy. Unless they are supported and repositioned to
meet the emerging demands of markets like improvement in
design, modifications in process technology and assurance
of quality they will not be able to cope up with the competition
from international markets.
47.
Government have done a study of the Coir sector using the
services of the Administrative Staff College of India and
based on their recommendations and in keeping with the requirements
of the sector six new schemes are being introduced this
year at a total cost of Rs. 2.9 crore. These include assistance
for procurement of husks/fibre, introduction of mechanization,
setting up of model ‘Coir Gramoms’ and encouraging self-help
groups. The market potential for coir and coir products
would be studied for promoting coir industry.
48.
To tide over the serious crisis faced by our coir industry,
Government will implement a package of measures with the
help of NCDC and NABARD in the cooperative sector. Towards
this, I provide Rs.5 crore as Government’s share.
49.
Handicrafts also would receive special consideration. I
set apart Rs. 2 crore for this purpose. This includes a
token outlay of Rs. 20 lakh for the functioning of a Mission
for bamboo in view of its tremendous scope for development
in the State and the benefit that would accrue to disadvantaged
sections like Scheduled Castes and Scheduled Tribes to find
productive employment.
50.
For the Handloom sector also a significant amount of Rs.
9.7 crore is set apart for a package of schemes including
the State share of Centrally Sponsored Schemes.
51.
Agriculture constitutes only a fifth of Kerala’s economy.
It provides jobs to several lakhs of people and props up
the rural economy. Now that prices have shown perceptible
improvements, the agriculture sector presents an optimistic
scenario after a long interval. This is the time to move
on to higher levels of productivity and quality. As our
agriculture is export oriented it is necessary to make our
agricultural sector more competitive. For realising such
a vision, importance has to be given to organic agriculture,
integrated farming systems and setting up high quality modern
laboratories. I am setting apart Rs. 1 crore for a new
scheme for organic farming and Rs. 4 crore for a scheme
for establishment of modern laboratories. These laboratories
would be part of a pilot project on Agro Vision District
Support System intended to modernize agriculture.
52.
With the same objective I set apart Rs. 81 lakh for promotion
of hi-tech innovative agriculture. In order to boost export
oriented agriculture it is proposed to establish Agro Export
Zones for spices, medicinal plants and floriculture. I set
apart Rs. 5.1 crore for this important scheme. As part
of implementing the recommendations of the Dr. Swaminathan
Commission on WTO issues, Rs. 1.50 crore has been provided
to develop a sustainable agricultural trade security system.
The highly successful participatory development model for
enhancement of vegetable and fruit production would be extended
to two more districts and Rs. 4 crore is set apart for this
purpose. Another major initiative proposed to be strengthened
is the use of remote sensing data for sustainable use of
natural resources in agriculture. This would be implemented
in partnership with ISRO. I earmark Rs. 5 crore to the
Kerala State Remote Sensing and Environment Centre for this
purpose.
53.
While exploring new vistas in agriculture is important,
the traditional areas that need revitalization are equally
critical to Kerala’s agriculture. Therefore I set apart
Rs. 10.80 crore for sustainable development of rice based
farming system and Rs. 9.75 crore for coconut development.
54.
Vanilla cultivation is now emerging as an attractive choice
for farmers including small and medium farmers. To increase
employment opportunities and raise income of farmers, Government
is formulating a package of measures for encouraging vanilla
cultivation including the distribution of planting materials.
I am providing Rs. 2 crore for this.
55.
As promised in the last Budget the Rules for the Agriculture
Price Stabilization Fund are ready and the scheme would
be fully operational this year. In order to further strengthen
it I set apart Rs. 50 lakh.
56.
Animal Husbandry activities in the State provide the much
needed supplementary income to marginal farmers and agricultural
labourers and therefore they are important from an anti-poverty
perspective. For strengthening veterinary services Rs. 16.60
crore is allotted and for expansion of crossbreeding facilities
Rs. 6.65 crore is set apart. To protect and upgrade the
indigenous Malabari Goats of our State, I set apart Rs.
15 lakh to be given to Kerala Livestock Development Board.
For different activities of the Dairy Development Department
I earmark Rs. 2 crore.
57.
It is a paradox, that though the fisheries sector contributes
substantially to the Kerala economy, our fishermen still
remain among the poorer sections of our society. Most of
their villages still do not have the minimum necessary infrastructure.
Therefore the strategy of Government in the fisheries sector
is to focus on the welfare of fishermen and at the same
time achieving sustainable productivity in the sector.
For improving the lot of the fishermen I set apart Rs. 80
lakh for improving social infrastructure in the coast. In
order to implement self-employment programmes through institutional
finance from the National Backward Class Development Finance
Corporation and National Minority Development Finance Corporation
Rs. 40 lakh is kept as seed capital.
58.
To promote self-help groups and micro enterprises among
fisher-women I set apart Rs. 1 crore. As the State’s contribution
to the National Fishermen Welfare Fund to provide off-season
relief to fishermen, Rs. 3.5 crore is set apart and for
the housing scheme of the National Fishermen Welfare Fund
Rs. 3 crore is provided.
59.
Work in the Fishing Harbours of Kayamkulam, Muthalapozhi,
Quilandy and Ponnani would be completed. As the State share
for this completion work as well as for work in other fishing
harbours I earmark Rs. 6 crore.
60.
For boosting inland fisheries I set apart Rs. 1.20 crore
for Kuttanad and Rs. 1.25 crore for the Pokkali fields of
Ernakulam.
61.
A scientific approach has been introduced in preparing plans
for forest development activities in the State. For forest
protection and for survey of forest boundaries I am setting
apart Rs. 13.80 crore under two schemes. For regeneration
of degraded forests with people’s participation Rs. 3.85
crore is set apart and for conservation of bio-diversity
Rs. 1.20 crore is earmarked. I also set apart Rs. 50 lakh
for eco-tourism for which there is tremendous scope in the
State. For development of non-wood forest produce which
would be highly beneficial to the tribal communities I provide
Rs. 1.50 crore. Efforts are still on to get a second phase
for the World Bank assisted Kerala Forestry Project. To
consolidate the gains of the first phase Rs. 2.80 crore
is set apart.
62.
The Infrastructure Act is expected to be in place during
the coming year. Government is in the process of finalizing
two mega infrastructure proposals for private participation
namely Vizhinjam Transhipment Terminal and North-South Express
Way. Once these fructify they will transform economy of
the State through several spin-off effects. A series of
reforms is being introduced under MGP to facilitate private
investment in infrastructure both for Government and Local
Governments
63.
During the coming year I expect to draw a minimum of Rs.250
crore under RIDF of which Rs. 100 crore is earmarked for
different government departments, Rs. 75 crore for District
Panchayats and Rs. 75 crore for Block Panchayats. The earmarking
of funds for Block and District Panchayats is in recognition
of their project preparation capacity and is expected to
result in high quality infrastructure projects in rural
areas.
64.
The World Bank aided Kerala State Transport project will
be implemented with greater vigour for which I set apart
Rs.200 crore. Another Rs.39.8 crore would be spent on roads
under the control of PWD namely major District Roads and
State Highways.
65.
In view of the growing importance of Kochi as a strategic
development hub in our State, I am providing Rs. 2 crore
for extending the Pullepady Thammanam Road to connect to
the Airport – Seaport link near to the Special Economic
Zone.
66.
Being a coastal State, development of Ports and Harbours
is a special priority. Efforts are on to mobilize private
investment to upgrade Ports and Harbours and a draft policy
is ready which would be finalized this year. Among the initiatives
being taken up by the Ports Department are development of
cargo berths at Vizhinjam and Thankasserry for which Rs.1.56
crore and Rs.1.50 crore are set apart respectively.
67.
In a State where the vehicle population is increasing at
a rapid pace government intends to follow a two pronged
strategy of focusing on safety as well as on quality services
to the vehicle owners. I set apart Rs.40 lakh for the computerisation
of Motor Vehicles Department. I am glad to introduce two
new schemes one for modernization of Motor Vehicle Check
posts for Rs.25 lakh and the other for establishment of
a Vehicle Testing Station at Kozhikode for Rs.15 lakh.
68.
To improve pedestrians and travellers amenities, a comprehensive
mix of preventive and promotional measures is being introduced
under MGP at a cost of Rs.4 crore.
69.
Driving licenses in Smart Card form and Registration Certificate
in Smart Optical Card form will be introduced this year.
A Drivers Training Institute will be set up at Edappal with
the assistance of Government of India. 13 mobile enforcement
squads will be created and 5 new check posts will be opened
in the State.
70.
The State Government would strive to speed up the upgradation
of the Thiruvananthapuram International Airport. For land
acquisition I earmark Rs.10 crore in my budget.
71.
In a densely populated economically integrated State like
Kerala an affordable safe and convenient public transportation
system is inevitable and this is to be on the basis of a
clearly enunciated policy. In order to develop an action
plan for the three major cities I set apart Rs.4.5 lakh.
72.
Inland Water transport requires greater encouragement so
that the vast untapped potential in the State can be used
to provide an efficient and eco-friendly mode of transport.
I set apart Rs.4.8 crore for the purchase of 12 new Boats
for augmenting the ferry services. For developing Inland
canals I set apart Rs.4.20 crore under two schemes.
73.
Completion of construction of Station Offices at Kavalam,
Panavally, Muhamma, construction of regional Office at Thrikkarippur,
modernization of existing Slipway at Dock and Repair Section
of Alappuzha and installation of two additional slipways,
installation of communication system and safety equipments
are the activities that will be undertaken during 2004-2005.
74.
Kerala Shipping and Inland Navigation Corporation propose
to build two new bulk carrier barges at a cost of Rs.300
lakhs each by availing 30% vessel building subsidy from
Government of India. Catamaran services connecting Thiruvananthapuram
Kochi and Kozhikode will be started during in 2004-2005.
75.
The restoration of the Alappuzha canal system and the development
of the Town have remained an unfulfilled ambition of Governments
in the past. I have great pleasure in providing Rs. 5 crore
to meet the initial expenditure towards realising the cherished
desire of the people of Alappuzha.
76.
The capital region development project is under way and
certain key infrastructure schemes have already been taken
up. In order to complete them and to take up new projects
I am providing Rs.40.25 crore. In addition to this Rs.10
crore is earmarked by the Kerala State Electricity Board
for improving electricity supply infrastructure in the City.
77.
In addition, I am announcing Rs. 10 crore for a package
of new schemes for the city which includes funds for sewerage
facilities in rural areas adjacent to the capital city.
78.
I am allocating Rs.1.5 crore to assist TRIDA in its development
schemes for the Palayam, Chalai and Medical College areas.
79.
Varkala region has grown considerably in importance over
the years as a pilgrimage and tourist centre. A Tourism
Master Plan has been drawn up for Varkala. I provide Rs.
1 crore for the creation of a Varkala Development Authority
for the development of this region.
80.
Facilities for transportation of agricultural produce to
markets have to be improved alongside with the revival of
the agricultural sector. For this I am pleased to set apart
Rs. 10 crore to meet the expenditure for a Hill Highway
Authority.
81.
The establishment of the Hill Area Development Authority
and the Coastal Area Development Authority had to await
improvement in the State Finances. Government intends to
appoint a Special Officer for this. I am providing Rs.
7.50 crore each for each of the two authorities.
82.
I am providing Rs. 1 crore towards expenditure on Land Acquisition
for a Trade Centre cum Mini Bus Station at Kazhakoottam.
83.
Power Sector in Kerala is on its reform path to achieve
financial viability and social goals. Reforms in generation,
transmission and distribution would now have to be within
the boundaries set by the Electricity Act 2003. Thrust
would be given for completing the ongoing hydel projects
and for starting new projects.
84.
Through the projects proposed to be taken up viz. Pallivasal
Extension Scheme, Athirapally and Mankulam and by completing
the ongoing projects, the Board targets an addition of 391.5
MW of power. A significant addition to the transmission
and distribution network through three new 220 KV, ten 110
KV, five 66 KV and thirty five 33 KV substations are proposed.
An amount of Rs.256 crore is proposed for transmission projects
during 2004-05.
85.
An amount of Rs. 350.35 crore has been earmarked for the
distribution sector also. KSEB proposes to add 4 lakh service
connections, 2000 km of 11 KV lines and 5500 km of LT lines
as part of this thrust. The 400 KV line from Madurai to
Thiruvananthapuram will be commissioned this year and work
on the 400 KV line from Mysore to Kozhikode has started.
The Board has set an ambitious target of reducing T&D
losses by 3% every year as part of its strategy to become
financially viable.
86.
The UNIDO Regional Centre in EMC will take up preparation
of Detailed Project reports for small hydropower projects
and a Model small hydro power project in Mankulam. Work
on 30 small hydropower projects is expected to start in
January 2004 with an installed capacity of 77.5 MW. ANERT
proposes to develop 100 MW through wind energy potential
in Ramakkalmedu in Idukki in 2004-05.
87.
The bane of our irrigation sector has been the inordinate
delays in execution of projects. In the Tenth Plan, Government
are committed to completing the major projects under implementation.
The Muvattupuzha Valley irrigation project will be commissioned
in the coming year and for this purpose I have provided
Rs. 50 crore. Partial commissioning of Edamalayar Irrigation
Project is also expected in the coming year and for this
Rs. 8.40 crore is set apart. In order to rehabilitate old
irrigation systems Rs. 10 crore is earmarked.
88.
The second phase of the National Hydrology Project with
World Bank support is to be implemented in the Annual Plan
2004-05. I set apart Rs. 2 crore for the Surface Water component
and Rs. 4 crore for the ground water component of the scheme.
89.
Government intends to observe this year as the year of Water
Conservation. I set apart Rs. 10 crore for Rainwater harvesting,
Rs. 75 lakh for upgradation of wells and Rs. 1.50 crore
for developing traditional water harvesting and water conservation
methods. Government intends to come out with a revised water
resource policy.
90.
Government of India has approved Rs.12.92 crore as its share
for the first phase of the Pamba Action Plan. The State’s
share for the first phase of the project will be Rs.5.33
crore. Lakhs of devotees who visit the pilgrimage centre
of Sabarimala every year will benefit from this project.
91.
I am providing Rs. 2 crore for the Thottumughom Lift Irrigation
Scheme. I also set apart Rs. 2 crore for the Madambom
Regulator Cum Bridge Scheme across Sreekantapuram River
in Thaliparamba Taluk.
92.
To expedite the development of the Chamravattom Bridge Cum
Regulator scheme, I am enhancing the budgetary provision
to Rs.5 crore.
93.
In the process of liberalization and globalization intensifies
the worst affected have been the disadvantaged social groups
like Scheduled Castes. Government is acutely aware of this
fact and intends to actively support them to improve their
capabilities to benefit from the new opportunities. The
Special Component Plan would be to the tune of Rs.427.20
crore of which 2/3rds would be planned and implemented by
local governments.
94.
In continuation with the policy of developing human resources
focus is given to education and training. As in the last
year majority of the schemes are oriented towards this objective.
Government intends to formulate a package for enabling students
from Scheduled Castes and Scheduled Tribes to access educational
opportunities outside the country. Funds required would
be met from the Corpus Fund under SCP. I am providing Rs.13.05
crore for hostels, Rs.8.60 crore for Schools and Rs.40.02
crore for extending educational concessions and incentives
for Scheduled Caste students. For Scheduled Tribe students,
I am setting apart Rs.2.80 crore for hostels, Rs.12 crore
for schools and Rs.3.97 crore for educational concessions
and incentives.
95.
The Health Insurance Scheme that I had announced in my last
budget has been finalised with major insurance companies.
I am setting apart Rs.10 crore for this.
96.
For the development of backward classes Rs.2.52 crore is
set apart both for educational development as well as economic
development.
97.
I am happy to announce that a very innovative programme
for the care of destitute and vulnerable sections of society
will be implemented in all Village Panchayats and urban
local governments in 2004-05. I am providing Rs. 50 crore
to the Social Welfare Department for implementing this comprehensive
security scheme. The scheme would be patterned on the
‘Ashraya’ model of Kudumbashree.
98.
Government has set for itself the ambitious target of making
Kerala a ‘Malnutrition Free State’. I am setting apart
Rs. 10 crore for realising this laudable goal.
99.
I am also setting apart Rs. 1 crore for the Snehatheeram
project – a unique initiative for the care of senior citizens
to be first implemented in Malappuram district.
100.
Government recognises the special place of Anganwadies in
our State. I am pleased to provide Rs. 27 crore for constructing
540 anganwady buildings through Local Self Governments.
101.
The poverty census has just been completed. The data will
be computerized and shared with neighbourhood groups so
that a community evaluation can be done and using the validated
data an index of different levels of poverty would be generated
in consultation with all sections of people. This will serve
as a powerful tool for the implementation of the Anti-poverty
Sub Plan which has been initiated for the first time in
the country in the State. For this initiative I set apart
Rs.3.10 crore.
102.
It is also necessary to monitor the levels of policy and
track the funds flow to the poor in an open and transparent
manner. A multimodal monitoring system would be put in place
to be implemented simultaneously through the Government,
the community and selected independent institutions in an
absolutely transparent manner. I set apart Rs. 2 crore for
this new path breaking project.
Mangalya
Insurance Scheme
103.
I take pride in announcing the ‘Mangalya Scheme’ for the
destitute families in our State which constitutes 2% of
our households. This is the first scheme of its kind in
the country and will be a historical step towards further
affirming Government’s role in providing social security
for the poorest of our poor. Under the proposed insurance
scheme, Government will pay the monthly premium for a maximum
period of eight years for every girl child from every destitute
family above the age of fourteen. The amount so accrued,
subject to a minimum of Rs.10,000 will be given at the time
of her marriage. Competitive proposals will be invited
from insurance company in April 2004. The annual recurring
expenditure for this novel scheme is expected to be Rs.12.00
crore per annum.
104.
After achieving impressive levels of literacy and enrolment
in schools, the focus will now be on enhancing the quality
of education in our State. The allocation for General Education
has been increased from Rs. 55.19 crore to Rs. 71.56 crore.
A massive scheme to provide IT infrastructure as well as
the software for IT education in government schools is being
introduced for which I am glad to earmark Rs. 13.20 crore.
For improving the quality of education in high schools I
set apart Rs. 1.75 crore and for improving the quality in
Higher Secondary Schools I set apart Rs. 5 crore.
105.
In Vocational Higher Secondary Education, Government intends
to introduce subjects, which have a ready job market. I
set apart Rs. 5 crore for this purpose. There are seven
special schools serving the needs of students who are challenged.
In order to improve the basic facilities of the schools
I set apart Rs. 50 lakh.
106.
All these efforts at improving quality would be in vain
unless the parents are fully involved. Government would
be introducing a path breaking monitoring system by the
community to ensure that schools deliver the services expected
of them. In order to design and operationalise such a system
in Government and aided schools Rs. 50 lakh is provided.
107.
With the opening up of higher education in Kerala, we have
been able to catch up with the leading States in the sphere
of higher education. In order to strengthen the Universities
I set apart Rs. 23 crore for Kerala, Mahatma Gandhi, Sri
Sankaracharya, Kozhikode and Kannur Universities. For the
Cochin University of Science and Technology, Rs. 4 crore
is earmarked and for the Kerala Agricultural University,
taking into account its unique position, Rs. 23.50 crore
is allotted.
108.
A significant allocation in the coming year would be for
the World Bank assisted Technical Education Quality Improvement
Programme for which I set apart a substantial sum of Rs.
30 crore.
109.
I am setting apart a special assistance of Rs.1 crore for
the construction of a new block to the Thalappady Centre
of the School of Medical Education under Mahatma Gandhi
University. In addition to the budgeted schemes, I provide
Rs. 10 lakhs for the upgradation of the Technical High School
in Ezhukone as a Polytechnic.
110.
Health has been a key component of Kerala’s success in human
development. Of late our health system is under stress,
even threatening achievements of the past. Therefore Government
accords primacy to the upgradation of the health system
and for improving its quality. While the local governments
would focus on primary and secondary health care system,
Government itself would devote greater attention to the
tertiary sector.
111.
In primary and secondary health care, in all the three streams
of medicines the accent is on providing the minimum standards
of facilities and services in partnership with local governments.
For Allopathy I set apart Rs. 27.50 crore in two schemes;
for Ayurveda I set apart Rs. 1.71 crore in two schemes and
for Homoeopathy allocation for the same purpose would be
1.34 crore in two schemes.
112.
In Allopathy certain basic reforms are being introduced
particularly in rationalizing drug procurement and distribution,
development of treatment and referral protocols in government
hospitals, involvement of neighbourhood groups in Health
Service Delivery and introduction of community based monitoring
of the service delivery in health institutions. For these
four innovative schemes I set apart Rs. 1.45 crore.
113.
Improvement of Laboratories is of special priority and the
Thiruvananthapuram Public Laboratory would be developed
for getting accreditation from the National Accreditation
Board for Laboratories. I allot Rs. 2.55 crore for upgradation
of the Medical Laboratories. The Kerala Heart Foundation
with the objective of developing an autonomous structure
for providing most modern cardiac care to adults and children
and to develop outreach units in the districts. Government
has already allotted the land for the purpose and I am setting
apart Rs. 1 crore for start up activities. In order to improve
the tertiary care system Medical Colleges would be strengthened.
For the allopathic Medical Colleges Rs. 30.85 crore is earmarked.
For the Ayurveda Medical Colleges Rs. 7.75 crore is set
apart and the Homoeopathic Medical Colleges Rs. 2.25 crore
is allotted. In keeping with the national policy and State
priority hospital waste management would get top priority
and for designing a system Rs. 25 lakh is provided.
114.
In order to reduce the burden on the health care system
it is necessary to improve sanitation and provide clean
drinking water. For water supply there is a massive step
up of allocation from Rs. 166.8 crore to Rs. 325.7 crore.
The largest every water supply project in the State would
be implemented with Japanese assistance for which alone
Rs. 150 crore is provided. The World Bank assisted participatory
water supply and sanitation project is being extended to
all districts. Rs. 90 crore is earmarked for this purpose.
This innovative and highly acclaimed project would be implemented
through Village Panchayats.
115.
Kerala is the first State in the country where total sanitation
projects are being taken up in all the districts with Government
of India support. Nearly more than 2/3rd of
the cost is met by the State and local governments together.
This project would be implemented on a campaign mode and
all Government schools in the state will be provided with
water and sanitation facilities, hopefully in the coming
year itself.
116.
Government has been able to strengthen the foundation and
give the cooperative sector a strong democratic base in
this short period. I am providing an allocation of Rs.15
crore out of which I propose to provide Rs.5 crore for the
Kerala State Cooperative Agricultural Development Bank,
Rs.3.25 crore for revitalisation of cooperative societies
and Rs.3.25 crore for diversification and development.
In the cooperative sector, Kerala offers the lowest rate
of interest in the Country, of 8.5% for loans below Rs.25000.
A ‘Green Card’ system for members with history of timely
repayment is to be introduced this year. COINS, the Cooperative
Insurance Society will launch a Health Insurance Scheme
for members above the age of 70 years. Thrust will be given
to microfinance schemes through self help groups in the
cooperative sector.
117.
To help sustain the progress achieved by the Kerala State
Agro-Cooperative Ltd. (AGREENCO) in the cooperative industrial
sector, I set apart Rs.5 crore towards share capital contribution.
118.
To expedite the development of the educational institutions
under CAPE, I am pleased to set apart Rs.10 crore for it.
119.
My budget accords great importance to the R&D institutions
under the Kerala State Council for Science, Technology and
Environment. For the six institutions under the Council
I am glad to allot Rs. 27.10 crore which will be released
on a project mode by the Council to the institutions. In
addition for a package of schemes to strengthen science
and technology activities in the State I set apart Rs. 7.07
crore for the State Council.
120.
Government gives top priority to developing bio technology
- an area where Kerala enjoys a natural comparative advantage.
A bio technology policy has been announced and the Kerala
Bio Technology Board and the Bio Technology Commission have
been set up. I am happy to announce the setting up of a
corpus fund of Rs. 100 crore to be mobilized from different
sources for development of bio technology. As Government’s
contribution, Rs. 10 crore is provided in this budget.
121.
A study will be taken up to assess the problems of the public
distribution system and the emerging role of the Civil Supplies
Department.
