Kerala Budget Highlights

Developmental Highlights    Financial Proposals
  • Construction of three industrial corridors with a capital investment of around Rs.50,000 crore will be started in 2021-22.
  • Project with total outlay of Rs. 15000 crore to be taken up under KIIFB
  • Rs. 117 cr for infrastructure development
  • 4530 km of roads to be renovated

Education and Employment

  • Eight lakh employment opportunities to be created next year
  • Rs. 100 cr Integrated Expatriate Employment Scheme
  • 4000 posts to be created in Health Department; 1000 posts in universities
  • Skill Mission to impart training to an estimated 50 lakh educated youth under K-DISC
  • Rs. 2000 cr to universities through KIIFBRs. 1000 cr for affiliated colleges
  • Enrolment in higher education sector to be hiked
  •  500 post-doctoral scholarships and 30 centres of excellence under universities
  • Rs. 1000 cr for affiliated colleges
  • Facility to ‘Work near Homes’ to be set up (outlay: Rs. 20 cr.)
  • KFC, KSFE and Kerala Bank to provide loans for buying computers
  • Scheme  for women, who had to break career, to resume work from home or near homes.
  • Digital platform, and skill training for unemployed
  • Rs. 100 cr Ayyankali employment guarantee programme for urban areas
  • Rs.100 crore is earmarked for Ayyankali Internship Scheme
  • Rs.7500 crore for livelihood schemes
  • Local committee to plan five jobs per 1000 people locally
  • Three lakhs skilled and unskilled job opportunities will be created in Non-agricultural sector in 2021-22.
  • At least 2 lakh people to be additionally be provided with jobs in agriculture sector


  • Rs. 5.5 crore for expanding cashew cultivation
  • Rs. 5 crore for coffee and Rs.75 crore for coconut farming
  • Rs. 116 cr for paddy development
Industrial and Internet development
  • Multi-featured programmes for promotion of start-ups
  • 2500 start-ups (20000 jobs) planned, aid to start-ups making losses
  • 5000 acre to be acquired near Kannur airport for industrial corridor
  • Rs. 100 cr for tourism promotion
  • 16,000 MSMEs to be set up in 2021- 22
  • Rs. 2,000 crore earmarked for the promotion of small enterprises.
  • KSDP to manufacture cancer medicines
  • Kerala Rubber Limited  to be formed with Amul model societies for rubber procurement
  • Rs. 200 crore outlay Kerala Development and Innovation Strategic Council (K-DISC) as ‘knowledge economy fund’
  • Rs.166 crore is earmarked for the share capital of K-FON to reach Internet to all homes
  • First phase of K-FON project in February
  • Welfare Board for workers in the tourism sector
  • 10 kg ration rice at Rs. 15 for blue and white card holders
  • Supply of medicines to the elderly at home
  • Rs. 100 cr to welfare fund for farm workers
  • Karunya benevolent fund to be continued
  • 1.5 lakh new houses to be constructed under Life Mission
Other proposals
  • Rs. 50 crore to KSRTC for the introduction of 3000 CNG-run buses.
  • Weekly lotteries will have 11000 more prizes
  • (Share of prizes increased to 60% from 58.5%)
  • Interest Free Loan of Rs.5 lakh each to Kudumbasree stalls selling coir products
  • Asraya Scheme to get Rs. 6000 to Rs. 7000 cr in five years for family based micro plan implementation.
  • Life Mission to provide 40000 houses to Scheduled Caste families and 12000 houses to Scheduled Tribe families
  • Government to drop collection of flood cess (1%) from July 2021.
  • Kerala Money Lenders Act to be amended to check collection of exorbitant interest on loans by digital platforms.
  • Tax on LNG/CNG will be reduced to 5% from 14.5%.
  • 50 per cent reduction on motor vehicle tax for newly registered electric vehicles for the next five years.
  • Subsidy of Rs.25000 – Rs. 30000 will be granted to 10000 e-auto rickshaws.
  • Vehicles registered in the name of institutions engaged in palliative care and used exclusively for the purpose will be exempted from tax.
  • New industries will be exempted from 10% electricity duty for first five years
  • Registration fees and stamp duty related to plots, sheds, lease deeds, lease cum sale, sub-lease and absolute sale deeds of industrial parks run by KSIDC, KINFRA, SIDCO, DIC, Other special purpose vehicles formed by the Government for development of industries will be reduced to one per cent and four per cent respectively.
  • Incentives for eco-friendly buildings such as 50 per cent reduction in one time building tax, 20% reduction in local building tax, one per cent reduction in stamp duty and ten per cent reduction in power tariff.
  • Compounding scheme for undervaluation of property for registration will be continued in the next financial year.
  • A one-time settlement of the lease rent arrears of Government land too will be extended.
  • VAT and GST amnesty schemes to continue during next year also.
  • Additional Assistance of Rs. 10000 cr to local self-governments
       Pay revision, pensions
  • Pay revision of Govt employees to be implemented by April 2021
  • Welfare pensions raised by Rs. 100 to Rs. 1600 a month
  • ASHA workers' allowance will be hiked by Rs. 1000
  • Allowance of pre-primary ayas increased
  • Honorarium of members of local self-governments increased to Rs. 1000
  • Pension for journalists increased by Rs. 1000
  • Commodities

  • Base price of rubber raised to Rs. 170 a kg from April 1
  • Support price for coffee at Rs. 90 a kg
  • Procurement price of coconut and paddy increased to Rs. 32 and Rs. 28 respectively

    • Additional Expenditure announced: (-) Rs. 1164  cr
    • Additional resource mobilisation: Rs. 200 cr
    • Tax reliefs: Rs. 191 cr
    • Cumulative Deficit at the end of the year: (-) Rs. 1306.69 cr.