Kerala Budget 2017: FM banks heavily on off-budget sources, KIFB for funding projects

Isaac showered praises on Kerala Infrastructure Investment Fund Board (KIFB) for making proud advancements in just six months.
The budget proposed to give the green signal for projects worth Rs.1100 crores for the KIFB.
The board would implement projects worth Rs. 25,000 in the coming years,

Kerala Budget 2017 FM blames demonetization stress on fund raising outside budget

State Finance Minister Thomas Isaac presented the first full budget of the Pinarayi Vijayan government by blaming demonetisation for destabilising the state economy. "It was a big challenge to prepare the budget in the context of unprecedented problems caused by demonetisation," Isaac said. The drought situation also made things worse.

Demonetisation badly affected the revenue collection of the state government and investors backed off. Even in this adverse circumstances, the state cannot cut welfare spending. Hence, the deficit of income would go up, Isaac said. The government will try to raise funds outside the budget, he added.

Isaac showered praises on Kerala Infrastructure Investment Fund Board (KIFB) for making proud advancements in just six months. The budget proposed to give the green signal for projects worth Rs1100 crores for the KIFB. The board would implement projects worth Rs 25,000 in the coming years, the FM minister.

The Finance Minister is heavily banking on the KIFB, which aims to raise huge funds for Kerala's infrastructure development, mainly from non-resident Keralites.

When it comes to providing funds for infrastructure development for government schools and hospitals, the FM put the burden on the KIFB and stated that KIFB would provide Rs 2,000 crore for hospitals and Rs 500 crore for schools. To put it simply, the fund would be sourced from outside the budget.

The state budget proposes to set aside a record amount of Rs 2600 crore for SC/ST welfare and development. The FM claimed that it was the highest in the country.

Kerala Budget 2017 Highlights:

- Manual scavenging still exists in Kerala: Government wants to abolish this forever, and ten crores would be set aside for mechanisation of septage cleaning.

- Suchitwa Mission (Sanitation Mission): 127crore

- Establishment of modern slaughter houses: 100 crore

- modernisation of public crematoriums: 100 crore

- 3 crore trees will be planted as part of greening mission

- New posts of 5210 doctors and nurses would be created.

- Public schools will get Rs 500 crores through KIFB

- The taluk govt. hospitals to get Rs.2000 crore from KIFB

- Smart City Mission:100 crore

-Educational institutions would go hi-tech

- Welfare pensions would be raised to Rs 1100 from Rs1000

- Paddy procurement: Rs.700 crore

- SC ST welfare and development: Rs.2600 crore