Kerala Budget Highlights
2022-23

Developmental Highlights Financial Proposals

  • ₹ 2,000 crores is set apart in the Budget for 2022-23 for surviving the threat of inflation and ensuring food security against the background of Covid-19 pandemic

  • ₹2000 cr for land acquisition for K-rail project through Kerala Infrastructure Investment Fund Board (KIIFB).

  • ₹ 100 crore will be made available through KIIFB for construction of hostel rooms in universities including international hostel rooms.

  • Entrepreneurship centres to be set up on a pilot basis near educational institutions in all 14 districts of Kerala.

  • ₹350 crore allocated for District Skill Parks through KIIFB.

  • Skill Courses in Educational Institutions in every constituency.

  • ₹100 crore to be provided through KIIFB for setting up Medical Tech Innovation Park at Thiruvananthapuram.

  • Kerala Genome Data Centre’ (KGDC) in line with international models like ‘UK Biobank’ to generate, curate and publish Genomic Data related to medical, agricultural and livestock sectors.

  • Steps have already been taken to form a Centre of Excellence (COE) and a strategic programme on Microbiome, integrating various research institutes, within a year.

  • An amount of ₹25 lakh is provided for the preparation of a detailed project report for establishing a Centre of Excellence in nutraceuticals in Kerala.

  • India Innovation Centre for Graphene’, a Centre of Knowledge conducting experimental researches on the new technology of Graphene, will be established.

  • A new IT park will be set up in Kannur. For IT Corridor extension, IT facility covering an area of 5,00,000 sq.ft will be set up in Kollam. Satellite IT parks will be established in 15 to 25 acres which will be purchased at premium rates through land acquisition on the proposed corridor having easy access via NH 66 from Ernakulam, Kozhikode and Technopark Phase III.

  • Technopark, Techno City, Info Park and other IT Centers will be expanded towards doubling export of IT products.

  • An amount of ₹1000 crore will be earmarked from KIIFB land acquisition pool for acquiring land to set up IT parks in Kollam, Kannur and other areas.

  • ₹50 crore is earmarked for ‘Work near Home’ project.

  • A corpus fund of ₹200 crore will be set apart under KIIFB for the construction of Industrial Facilitation Parks.

  • Four Science parks with total investment of ₹1000 crore will be set up. Each science park will have an area of 10 lakh sq. ft. in two blocks

  •   ₹4 crore is earmarked for conducting Global Science Festival at Thiruvananthapuram under the aegis of Science and Technology Department .

  • Steps will be taken to produce value added products such as ethanol and beverages with low alcoholic content from fruits and various agricultural produces. An amount of ₹2 crore is set apart for the project meant for production and other value-added products from tapioca at Tuber Crops Research Institute, Thiruvananthapuram, on a pilot basis.

  • ₹5 crore is earmarked for the initial activities of Value-Added Agricultural Mission.

  • ₹ 100 crore is allocated from KIIFB for starting 10 Mini Food Parks having facilities to produce and market Kerala’s own produces.

  • ₹ 500 crore is set apart for providing subsidy in rubber sector.

  • ₹ 50 crore is set apart for increasing production and consumption of rubber.

  • A new scheme is announced for providing loans up to ₹50 lakh on simplified terms to self-employed agricultural groups for purchasing agricultural implements and machines and to provide them with a subsidy of ₹10 lakh or 25%, whichever is less.

  • Interest subsidy will be given to loans availed by consumers for installing solar panels in their houses in Kerala.

  • ₹2 crore will be allocated for clearing the Vamanapuram River and ₹20 crore for cleaning activities of Ashtamudi and Vembanad lakes. ₹1 crore will be provided for the protection and cleaning of Sasthamkotta lake.

  • An amount of ₹10 crore will be earmarked for the purchase of machineries for sand mining in dams.

  • Suchithwa Sagaram Scheme for the removal of plastic waste in water bodies will be extended all over Kerala.

  • ₹ 73.9 crore is earmarked for coconut development.

  • ₹ 18.92 crore is set apart to expand the area under fruit cultivation including indigenous and exotic fruits.

  • An amount of ₹100 crore is earmarked for the new scheme to protect the coastal area from soil erosion and climate change.

  • 15 dams are selected for phase II of ‘Dam Safety and Rehabilitation’ project.

  • ₹1 crore is set apart for establishing an Irrigation Museum at Idukki.

  • ₹9.80 crore is earmarked for the scheme for providing emergency veterinary services at farmer’s door steps at night as well.

  • ₹7.5 crore is set apart for Poultry Development Corporation, which aims to attain self-sufficiency in production as well as in consumption of egg and meat in the State.

  • A milk powder production center at Moorkkanadu in Malappuram district with the help of RIDF Scheme.

  • ₹72 crore is set apart for infrastructure development and human resource development of fishers.

  • An amount of ₹25 crore is allocated for formulating long term solution to the problems in the areas of man-animal conflict. Out of this, ₹7 crore is set apart for providing compensation for those who are killed or injured in wild life attacks.

  • jobs to two lakhs individuals through various employment generation schemes is planned.

  • Employment to 8 lakh youths in the next 5 years through Kudumbasree by imparting them with necessary job oriented skill training with the co-operation of Local Self Government under ‘Naipunya Keralam’ project.

  • Loan to the tune of ₹500 crore will be made available to the members of these auxiliary groups with a low rate of interest for earning their livelihood, developing local economy and poverty alleviation.

  • Proposal undder NABARD-RIDF scheme for mega projects costing ₹100 crore or more, which have probability of commercial success and income assurance instead of small scale projects.

  • An amount of ₹140 crore is allocated under second phase of Kuttanad Package for flood control and infrastructure development works of Kuttanadu.

  • Rs. 33 crore is set apart for implementing projects intended for mitigating the threats of flood in Alappuzha and Kottayam districts.

  • ₹30 crore is set apart for undertaking activities related to Sabarimala Master Plan.

  • Solar pushcarts with battery and other equipment for lighting and operational facility of electrical gadgets, will be provided to street vendors.

  • The first ever 25 kilowatt capacity Hydro Kinetic Turbine Project of Kerala will be installed in Moolathara left bank canal under Chittoor Irrigation Project.

  • Viability Gap Fund will be launched for strengthening the production of household non-conventional green energy including solar energy.

  • ₹28 crore is earmarked for creating an Electronic Hardware Technologies Hub.

  • The Budget targets to create one lakh new enterprises by the joint effort of various departments and create around 3 to 5 lakh job opportunities.

  • ₹7 crore is provided for ‘One Family One Enterprise’ Scheme.

  • ₹11.40 crore is earmarked for financial assistance to upgrade micro units to small units and small units to medium units.

  • ₹20 crore is allocated for providing various support to small scale food processing units.

  • ₹20 crore is earmarked for private industrial parks.

  • ₹7 crore is provided for the revival of small & medium scale cashew factories .

  • Price Stability Fund to ensure price stability of coir fibre, yarn and coir products.

  • ₹131.62 crore is earmarked for Kerala State IT Mission for providing IT infrastructure to undertake major e-governance initiatives of the State.

  • ₹17 crore is set apart to Kerala State Wide Area Network (KSWAN),

  • For increasing the reach of Government services to the citizen, 2000 Wi-Fi hotspots across the state will be established.

  • ₹26 crore is earmarked for the Digital University.

  • Government has assigned 20 acres of land at Techno City, Pallippuram, Thiruvananthapuram to KSITIL for the creation of a Center of Excellence in aero space and defence related products and services.

  • ₹ 41.51 crore is set apart for the infrastructure development for the sustainable movement of cargo and passenger transportation in Azhikal, Beypore, Kollam, Vizhinjam & Ponnani ports.

  • ₹ 10 crore each is earmarked for the development of Vizhinjam Cargo Port and Thankasseri Port.

  • Rs. 1000 crore earmarked for acquisition of  land for Thiruvananthapuram Outer Ring Road which starts from NH 66 at Navaikulam near Parippally and ending at Vizhinjam Bypass, connects the main carriage way with all leading radial and arterial roads of Thiruvananthapuram city. This 78.880 km long road estimated to cost ₹ 4500 crore, of which, the State Government has committed to meet 50% of the land acquisition cost.

  • ₹ 200 crore is earmarked in KIIFB this year for the land acquisition and construction of six bypasses.

  • An amount of ₹ 1500 crore will be allotted through KIIFB for the development of Thiruvananthapuram-Angamali MC road and Kollam-Shencotta road.

  • Assistance will be given to rollout 10000 e-auto in selected places of the state.

  • Air Strips in Idukki, Wayanad & Kasaragod and Green field Airport Sabarimala are proposed.

  • Initiatives will be started for establishing an airstrip network for the air travellers who intend to fly from one domestic tourist spot to another, by using 20-40 seater planes, helicopters, and for drone based transportation.

  • An amount of 5 crore is set apart for starting up of caravan parks and to provide basic amenities there.

  • Projects for construction of model houses in sinking Munroe Island and special houses in Kuttanad region.

  • ₹220.77 crore earmarked for scientific services and research related to global warming.
  • Mobile Ration Shops will be opened in major centers of all legislative assembly constituencies in the State.

  • ₹15 crore is earmarked for making differently-abled friendly infrastructure facilities in the school premises.

  • ₹2 crore is earmarked in the budget for the study, research and follow up projects of the Latin American Centre.

  • A Malayalam film museum will be set up to provide comprehensive information on the growth and development of the Malayalam film industry.

  • G.V.Raja Centre of Excellence in Sports will be setup at Menamkulam, Thiruvanathapuram, and an international sports complex will be setup at high altitude training centre, Munnar.

  • Regional Cancer Centre, Thiruvananthapuram, will be upgraded to State Cancer Centre.  Cochin Cancer Research Centre will be developed as an Apex Cancer Centre in central Kerala.

  • Data bank of Malayalee students studying abroad will be prepared by NORKA Department soon.

  • Comprehensive Development Package is proposed for Edamalakkudi.

  • A one term financial assistance of ₹2 lakh each will be provided to the families of Sickle Cell Anemia patients.

  • ₹ 16.50 crore is earmarked for Janani Janmaraksha Scheme which envisages financial assistance of ₹2000 per month for a period of 18 months to pregnant and lactating women.

  • ₹25 crore is earmarked during current year for the food security programme for women and children in tribal areas.

  • ₹ 5 crore is set apart for the rainbow project for transgenders.

  • ₹ 10 crore is earmarked for the formulation of schemes meant for the welfare and protection of senior citizens.

  • Egg and Milk will be included in menu for Anganwadis.

  • ₹2 core has been set aside for organising various programmes including seminars to ensure global peace.

  • Seven Agri-Tech facilitation centres to be established across Kerala at a cost of ₹175 crore

  • 50% of ferry boats in the State will be solar-powered under a project to cut carbon emissions and minimise the impact of global warming and climate change. ₹15,000 subsidy will be given for converting fossil fuel powered autos to electric.

  • ₹23 crore announced for the manufacture of by-products from effluents at Travancore Titanium Products factory in Thiruvananthapuram.

  • ₹17 crore is earmarked for the Comprehensive Endosulfan Package out of this 80% will be beneficial to women beneficiaries.

Land Tax

  • The Basic Land Tax rates will be increased in a calibrated manner for all the slabs.  A new slab will be introduced for 40.47 Ares and above in Grama Panchayats, Municipalities and Corporations.  This will fetch additional revenue of about 80 crores (annually).

  • A one-time increase of 10 % will be effected in Fair Values of land across all segments, resulting in additional revenue of about 200 crores. To address the issues of anomalies in the Fair value, a high-level committee will be constituted.

  • Compounding scheme for settling the undervaluation cases in transfers of land will be extended by another year.

    Motor Vehicles Tax

  • One-time motor vehicle tax on motor cycles costing up to 2 lakhs is increased by 1%. This is expected to bring in revenue of about 60 crores a year.

  • The green tax imposed on the old vehicles (above 15 years) will be hiked by 50%. In addition, green tax will also be levied on the following categories of diesel vehicles except motor cycles: 3-wheeler vehicles, private motor vehicles, medium motor vehicles, heavy motor vehicles and other diesel vehicles.  Additional revenue of about 10 crores is expected.

  • The one-time settlement scheme to pay the pending arrears on motor vehicle tax will be continued this year also. It is expected it will result in additional revenue of about 2 crores.

  • As part of the Caravan Tourism Project, the trimonthly tax rate stipulated in the KMVT Act 1976 will be amended and reduced conditionally from ₹ 1000 per square meter to ₹500 per square meter for the rented and contract caravans of Tourism Department. This will be effective from the date of contract.

    Sales Tax

  • The comprehensive amnesty scheme, implemented in 2020, to settle pending arrears under the legacy acts will be continued in 2022-23 also with modifications. KGST arrears relating to 2021-22 financial year will also be included in the scheme.

  • Provision will be introduced for refund of excess money paid as flood cess (discontinued last year).

  • The government will increase the ceiling on government guarantees for loans availed by various agencies from 5% of Gross State Domestic Product (GSDP) to lowest of 10% of GSDP or 100% of the total revenue receipts in the preceding year as on first April of any year.
  • The minimum support price for paddy is enhanced to ₹ 28.20.

    • Additional Expenditure announced: (-) Rs. 1081 cr.
    • Additional resource mobilisation: Rs. 602 cr.
    • Tax reliefs: (-) Rs. 2 cr.
    • Cumulative Deficit at the end of the year: (-) Rs. 761.16 cr.






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