Economic revival package to address challenges to growth

Thiruvananthapuram: Finance Minister T. M. Thomas Isaac announced an economic revival package of Rs. 12000 crore in his revised Budget for the current year presented to the Assembly on Friday, with view to face the current and emerging challenges to growth.

The investment package will be used solely for capital expenditure in building of major roads, bridges, buildings and parks.  Of this, Rs. 2500 crore is to be expended this financial year itself. An additional Rs. 8000 will be required by the end of the year for land acquisition and thus about Rs. 20000 crore will have to be mobilised, the Finance Minister said.

He recalled that the previous LDF government had proposed a similar scheme but the UDF government that came to power subsequently had not pursued it. Now, what is proposed is to empower the Kerala Infrastructure Investment Fund Board, set up in 1999, to raise funds from the market.  The rules would be amended to ensure credibility of the process for availing loans.

He said that that a person of international standing in finance or banking would be appointed as chairperson of fund trustee advisory commission. The commission would oversee the fidelity of investments. Regular transfer of cess on petrol and part of vehicle tax to the fund by government would be specified legally to ensure that there is a steady revenue stream for the Board. These revenues could be securitised to avail large loans and issue bonds with government guarantee.

Rs. 1000 crore from the package would be spent for upgrading a government school in each constituency to international level. Rs. 500 crore would be earmarked for upgrading basic facilities in 52 government arts and science colleges and engineering colleges.

Mr. Isaac also announced Rs. 1000 crore from the package for modernisation of medical colleges, district hospitals, general hospitals and taluk hospitals. Rs. 50 crore would be spent for starting woman and child hospital at Thalassery.

He said that roads and bridges, flyovers and underpasses costing Rs. 5000 crore would be taken up under the package.

Rs. 5100 crore will be spent from special investment fund to acquire 5100 acre for five large multi-purpose industrial zones. Rs. 300 crore will be spent for buying CNG buses for KSRTC. Rs. 400 crore is earmarked for development of 20 tourism destinations.  Rs. 100 crore will be used for revival of estuaries. Rs. 100 crore from the investment fund is to be used for modernising of government press.