By P. Sreekumaran
THIRUVANANTHAPURAM: A budget that proclaims from the housetop out and out privatization for all the problems plaguing Kerala. That is the best description for the maiden budget presented last week by Chief Minister V. D. Satheesan who is also the Finance Minister.
To put it in a nutshell, this budget betrays the people of Kerala by paving the way for corporate loot of the State’s wealth while turning the back on the people-friendly welfare measures implemented by the previous Left Democratic Front (LDF) Government. The Budget unveils a slew of projects. But is silent on where the government would find the funds for them.
It has cruelly dashed the hopes of the youth who are reeling under unemployment. It has sprung an unpleasant surprise on the Government employees by seeking to upset the Pay Commission and leave surrender facility.
The chief Minister claims to be a Nehruvian Socialist. But his actions go against the spirit of Nehruvian Socialism. Closing down public sector enterprises and handing over their assets militates against the concept of Nehruvian Socialism.
Major schemes in the Budget , including the Southern Kerala Economic Corridor, Mission Samudra and Land Reforms 2.0 are designed to promote privatization.
The Chief minister has played a cruel hoax on the people by going back on his promise to hike the social security pensions to Rs 3,000 from the Rs 2000 implemented by the LDF Government. He again took the Asha workers for a ride by refusing to implement his promise to hike their allowance to Rs 700 per day. All that he did was to increase the amount by a meagre Rs 100 per day!
True, he has made travel for women on KSRTC buses free. But the facility is limited only to ordinary buses. But in a callous act, he has stopped the Rs 1000 per month allowance – part of the Stree Suraksha Project – for 25 lakh women. The Satheesan Government has also signed the death warrant for the LIFE Mission of the LDF Government, which benefited over 5lakh people by deciding to discontinue it. This has dashed the hopes of lakhs of poor people to have a roof over their head.
The Budget has also deviated significantly from its position as detailed in the White Paper published a few weeks earlier. The expectations of the people for a radical shift in economic policies have been badly belied. The fact that the Budget size itself has been slashed speaks for itself.
The White Paper, for instance, had cited the multiple challenges faced by the Government, including fiscal stress, lower remittances and inflation. But the budget contains no meaningful measures to address these issues. Nor is there any concrete plans for resource mobilization. There is no specific mention of revenue sources to finance infrastructure investment, which was mainly carried out through the Kerala Infrastructure investment Fund Board(KIIFB) earlier. The Satheesan Budget sharply criticizes KIIFB and has formed an experts panel to revamp it. That the aim is to cripple KIIFB is evident from the reduction in vehicle tax, which constituted a major share of its revenue. In other words, the Budget seeks to ‘kill’ KIIFB while proposing additional infrastructure investment funded by the exchequer.
Meanwhile, the Land Reforms 2.0 announcement in the Budget has kicked up a flaming row between the UDF and the LDF. Leader of the opposition Pinarayi Vijayan saw in it an attempt to subvert the historic land reforms initiated by the first Kerala Government. It is easy to understand the politics behind the dismantling of land reforms which create obstacles for the land mafia. Land management policies can dilute the State’s land reform legacy to protect the interests of private business.
Likewise, the move to privatize the critical mineral resources along the coast , including rare earth deposits, does not augur well for the State as it could lead to the plunder of natural resources by private players. According to former Industries minister P. Rajeeve, the previous LDF Budget had earmarked Rs 100 crore to establish a Rare Earth Critical minerals Mission in partnership with State undertakings, including the Kerala Minerals and Metals Limited(KMML), KELTRON, and the Non-Ferrous Materials Technology Development Centre under the Ministry of Mines. The proposal had found mention in the union Budget, too.
The UDF Government, however, is going ahead with a plan to exclude the public sector undertakings from the project and fully privatize it. Rajeeve also opposed the plan to set up 10, 000 new Micro, Small and Medium Enterprises(MSMEs) with an allocation of Rs 100 crore when two ongoing projects, Mission 1000 and Mission one Lakh MSMEs are already in place. Instead of announcing new projects, the Government, Rajeeve said, should have strengthened the existing initiatives. \
Former revenue Minister K. Rajan is highly critical of the budget alleging that privatisation, land deals and gimmicks are galore in it. Referring to the Land Reforms 2.0, he said the changes to land laws and ceiling norms would clear the way for large-scale transfer of land to the corporates. The Budget, he added, has made a clear departure from the welfare state model.
Last but not the least, is the shocking decision to lower the tax rates for low-alcohol beverages. Lashing out at the move, Leader of the Opposition Pinarayi Vijayan said the prevailing rate of tax in the State for liquor made from spirits is 251%. Governments over the years have increased the tax on liquor to lower consumption. But when the rate is reduced, it could lead to a rise in consumption. While the Government has not reduced taxes on other important items, lowering the liquor tax smacks of a lop-sided priority. Even Congress leaders are unhappy over the Government’s move. In fact, former KPCC chief V. M. Sudheeran has asked the Chief Minister to withdraw it. Other ministers – Home Minister Ramesh Chennithala and Excise Minister M Liju are also against it. (IPA Service)
