State Budget 2020 Decoded (applicable for FY 2020-21 onwards)

BMG CONSULTANCY SERVICES  Strategy – Talent – Results

  • Kerala Government is going to hire vehicles instead of buying them – a big boost for rent-a-car companies.
  • CBL (Champions Boat League) allocated INR 20 Crores for conducting boat races across Kerala– a big boost to the tourism sector.
  • Higher education to get INR 493 Crores by way of expansion of laboratories and new courses – a big boost to education.
  • All street lights in Kerala to be replaced with LED. No filament and CFL bulbs from November 2020 – a big boost towards road safety and energy conservation.
  • 75 coconut samplings to be distributed per ward and INR 3 Crores allocated for pineapple farming – a boost to fruit farming in rural areas.
  • INR 2,400 Crores for Kuttanad District in health, education and farming after worst hit floods – a major fillip to many lost hopes.
  • Alappuzha to be developed as a heritage town. INR 323 Crores allocated for tourism and Muziris Heritage to fully take-off from 2021 – a major boost to the tourism sector in Kerala.
  • INR 10 Crores allocated to construct she-lodges for travelling single women – a major boost to women safety and tourism.
  • INR 25 per meal at 1000 Kudumbashree Hotels across Kerala from April 2020 – a major boost towards upliftment of the poor.
  • Metro line to be extended to the IT hub of Kakkanad. Silver Line, the semi-high-speed train project linking Calicut to Trivandrum to begin shortly – a major boost to the transportation and employment industry.
  • 20 flyovers, 74 bridges, 44 stadiums with INR 20,000 Crores by KIIFB (Kerala Infrastructure Investment Fund Board). The Board also plans INR 4,383 Crores for drinking water – a major boost towards infrastructure.

 Let’s Compare:
 

Sector FY 2017-18 FY 2018-19
Agriculture 1.7% -0.5%
Service 27.7% 25%
Manufacturing (PSU’s) 2,072 Cr 3,443 Cr
  • Movie tickets to be more costly as local bodies can now levy 10% entertainment tax on tickets.
  • Tax rebate of 25% on private electric vehicles for 5 years and 50% for E-Autos – a major boost for the growth of electric vehicles.
  • Bikes under INR 2 Lakhs and cars under 15 Lakhs will become more expensive as tax has been increased by 1% and 2% respectively.
  • Hike in luxury building tax for all residential buildings above 3000 Sq. Ft to mop up additional revenue.
  • Total area of Technopark, Infopark and Cyber Park will be expanded to 245 Lakh square feet. Security free loans for startups securing work from the Government – a major boost for the startup culture in Kerala.
  • INR 100 crores allocated for clean drive in all cities and 12,000 public toilets will be constructed in 2020-21 – a big boost towards sanitation and public health.