Kerala Budget Highlights
2020-21

Developmental Highlights Financial Proposals
  • Welfare pensions increased by Rs 100 to Rs. 1300 a month
  • Rs. 1000 crore for rural roads.
  • Rs. 1102 cr for public works (20% up)
  • 2.5 lakh new electricity connections
  • Rs. 90 cr for welfare of non-resident Keralites
  • Addition of 500 MW in installed capacity of power plants planned
  • One lakh flats for homeless
  • KIIFB projects to have outlay of more than Rs. 54000 cr.
  • Rs. 12074 cr as share for local self-governments
  • 20 fly-overs, 74 bridges, 44 stadia to be built with KIIFB funds
  • Drinking water projects costing Rs. 4383 cr by KIIFB
  • Interest-free loans of up to Rs. 10 cr to start-ups
  • Provident Fund subsidy for industrial promotion
  • CFL, filament lamps to be banned
  • Muzris heritage project to be commissioned this year
  • Travancore heritage project to be taken up
  • Alapuzha to be developed as heritage town
  • Kochi metro to be extended to, Tripoonithura, Stadium, Infopark
  • New oncology park at Kerala State  Drugs and Pharmaceuticals
  • Projects costing Rs. 6000 cr for Kochi
  • 12000 public toilets to be set up
  • Hunger-free Kerala— Ambalapuzha Cherthala to be covered
  • 1000 hotels supplying meals at Rs. 25 to be opened
  • Rs. 250 cr for Kudumbasree
  • Loans at 4% for Kudumbasree projects
  • Rs. 1509 cr for projects for women
  • She lodges in all towns
  • Organic farming in 20000 hectares
  • Asha workers honorarium increased by Rs. 500 a month
  • School uniform allowance increased to Rs. 600
  • Karunya project to be continued
  • Promotion of vegetable cultivation
  • Rs. 2000 cr Wayanad Package
  • Rs. 1000 cr package for Idukki
  • Rs. 6000 cr for Kochi City
  • Rs. 750 cr for Kuttanad.
  • Share capital of Kerala Financial Corporation to be increased by Rs. 200 cr.
  • Laboratories in all government colleges to be improved
  • 1000 more posts in higher education sector, 60 new courses in colleges
  • Air strip in Idukki
  • Solar power units in schools
  • 40000 houses for fishermen
  • Social audit on Okhi fund utilisation
  • Mega food park to be set up at a cost of Rs. 150 cr
  • Rs. 1000 cr package for coastal areas
  • 5000 acre industrial park
  • 1.5 lakh job opportunities to be created
  • 50000 km of rivulets to be cleaned.
  • Expenditure to go up by 15%
  • Current year’s expenditure is lower by 12% than estimated.
  • Rs. 700 cr saved by excluding 4.98 lakh ineligible pensioners through mustering.
  • 12-point drive for tax collection
  • Ten per cent increase to be effected in fair value of land (for transfer of titles).
  • 30% hike in fair value for land near major projects
  • Flats will be valued at PWD rates for stamp duty
  • Electric autorikshaws will be exempted from vehicle tax for first five years.
  • The existing rebate on the first five year tax on new petrol and diesel autorickshaws will be replaced with one time tax of Rs.2500.
  • Onetime tax on new electric cars, electric motor cycles, electric private service vehicles for personal use and electric three-wheelers will be limited to 5%.
  • Vehicles used exclusively for demonstration purposes, in possession of dealers, will be levied 1/15 of the tax of the vehicles of the same kind for one year.
  • Tax on multi axle goods vehicles, other than tipper category, having registered laden weight higher than 20000 kg will be reduced by 25%
  • Tax on motor cycles, not exceeding value of up to Rs.2 lakhs, will be increased by 1%
  • Tax on motor cars and private service vehicles for personal use, not exceeding value of 15 lakhs, will be increased by 2%.
  • Tax on 3-wheelers for private use and construction equipment vehicles will be increased by 2%.
  • License fee of pollution testing stations will be increased to Rs. 15,000.
  • Tax on education institution buses excluding that of Government and aided educational institutions will be increased in proportion to the seats. Quarterly tax at Rs.50 per seat will be levied on buses having up to 20 seats. For buses above 20 seats, the tax will levied at Rs. 100 per seat per quarter.
  •  10% reduction of tax on stage carriages will be made where tax is fixed on the basis of floor area.
  • The fee for displaying normal advertisements on vehicles will be revised as Rs.5 and digital advertisements as Rs. 10 per 100 square cms for one month.
  • It will be mandated that tax on vehicles registered in other States need to pay tax in Kerala only from the date on which NOC was issued from other states for change of address.
  • To enable ease of doing business registration facilities will be made available in selected sub registrar offices on holidays also. ISO standard will be implemented in sub-registrar offices.
  • Annual luxury building tax on residential building is revised as follows:
    278.7 - 464.50 Sq. Meter (3000 - 5000 Sq. Feet) = Rs.5000
    464.51 - 696.75 Sq. Meter (5001 - 7500 Sq. Feet) = Rs.7500
    696.76 - 929 Sq. Meter (7501 - 10000 Sq. Feet) = Rs.10000
    Above 929 Sq. Meter (10000 Sq. Feet) = Rs.12500
  • 20% rebate will be allowed for those who pay luxury tax in advance for 5 years and above.
  • Onetime building tax will be revised with an upper limit not exceeding 30 per cent.
  • Fees for transfer of registry is revised as follows:
    Up to10 Are = Rs.100
    11-20 Are = Rs.200
    21-50 Are = Rs.300
    51- 1 Hectare = Rs.500
    1 Hectare to 2 Hectare = Rs.700
  • Above 2 Hectare = Rs.1000
  • A fee of Rs.200 will be collected for issuing location map prepared by village office after inspecting the location, and Rs. 100 for issuing Record of Right (Thandaper).
  • A onetime scheme is declared to settle arrears on lease rent of Government lands with  50% relief on lease rent.

  • Additional Expenditure announced: (-) Rs. 632.93 cr
  • Additional resource mobilisation: Rs. 1103.00 cr
  • Cumulative Deficit/Surplus at the end of the year: Rs. 98.80 cr.

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