Kerala Budget promises to rescue sinking PSUs

Government dues, and vowed the government would foot the entire losses accrued by agencies like the Civil Supplies Corporation and the Consumerfed from their market intervention schemes.

Besides imposing a universal one per cent cess on VAT, the Rs 627-crore deficit Budget packed hardly any sting, though the Opposition was quick to call it a lameduck, wayward exercise.

“This is certainly a stabilising, welfare-oriented Budget in tune with basic Left commitments. The state would need to wait a couple of more years for a dream Budget factoring in more growth elements too,” Isaac claimed after the presentation, maintaining that the current deficits would be completely wiped out by 2010 and that the state was now getting out of the debt trap.

Besides several sops for the poor and marginalised sections, including hiking of pension to those in the unorganised sector to Rs 200 and old age pensions to Rs 250 and a corpus fund of Rs 60 crore for a Social Security Mission to coordinate the many schemes, Isaac set aside Rs 50 crore for farm debt relief.

The Budget, significantly, slapped a 10 per cent surcharge on VAT on retail outlets run by MNCs or national chains in the state, which the Left Government had vowed to discourage. It aimed at additional resource mobilisation worth Rs 188 crore.

Patients coughing up Rs 1,000 or more a day as room rent in all Kerala hospitals would now need to pay a 10 per cent Luxury Tax and plastic shopping bags have been imposed a 12.5 per cent tax.

Items that had their taxes hived in this budget included cycles, used cars, hospital equipment, handloom goods, machine tools, computer peripherals, printing equipment and a slew of others.