Kerala has demanded a special economic package of Rs 24,000 crore in the upcoming Union Budget to address the financial crisis faced by the state, along with financial aid for the rehabilitation of Wayanad, which was hit by devastating landslides on July 30. On Friday, December 20, Kerala’s Finance Minister KN Balagopal presented the requirements of the state at a pre-budget discussion chaired by Union Finance Minister Nirmala Sitharaman in Jaisalmer, Rajasthan.
Apart from the Wayanad package, the demands included special financial assistance for the Vizhinjam seaport project in Thiruvananthapuram.
The other major demands of the state are:
A special package of Rs 2,000 crore for the Wayanad township package, which includes construction of schools, houses, health centres, and other basic facilities in the disaster hit areas.
Rs 5,000 crore for the infrastructure development of Vizhinjam seaport, including rail connectivity, port-based industrial corridor, maritime cluster, green hydrogen hubs, and seafood parks.
Increase Kerala’s borrowing limit to 3.5% without any conditions and retain the provision to borrow an additional 0.5% for energy sector reforms.
Exclude loans taken by Kerala to fund the state’s contributions to central sector schemes from the borrowing limit.
Rs 3,940 crore for the project designed by Kerala for the welfare of senior citizens.
Rs 800 crore for replacing vehicles older than 15 years owned by the state government or its institutions.
Rs 300 crore for the Non-Resident Keralites Welfare Board.
Rs 2,329 crore for coastal erosion management and Rs 4,500 crore for the proposed project for permanent solution to problems related to climate change.
Rs 500 crore for the development of fishing harbours and Rs 186 crore for housing of fishermen.
Rs 1,293 crore for the development of Regional Cancer Centre in Thiruvananthapuram.
To ensure support prices for rubber, a price stabilisation fund of Rs 1,000 crore.
Rs 2,000 crore to clear the Supplyco liability related to paddy storage and strengthen the paddy storage systems.