Kerala Budget: How Much More Will You Have To Pay For Alcohol, Electricity? Know What's Costlier & Cheaper

Finance Minister K N Balagopal, who tabled the fourth budget of the second Pinarayi Vijayan government, said that the budget proposed a hike of Rs 10 per litre in excise duty on Indian-made foreign liquor (IMFL). In addition to it, the price of electricity will go up by 15 paise per unit.

The cash-strapped Kerala government on Monday has pitched for public-private funding in key areas to raise funds for the implementation of various developmental projects in the state budget for the fiscal 2024-25.

However, he later clarified that consumers would not bear the burden of the gallonage fee imposed on IMFL sales. The Finance Minister stated that the state anticipates earning an extra Rs 224 crore by implementing these measures.

To increase the government's revenue, the FM mentioned that appropriate changes would be made to The Kerala Court Fees and Suits Valuation Act, 1959, resulting in an additional Rs 50 crore being earned.

Elaborating on further plans for raising funds, the Finance Minister said the state could bring in Rs 440 crore annually by revising stamp duty slabs for lease deeds, resuming sand removal in rivers across the state and disposing of unusable assets piled up in various government departments.

There was a nominal increment of Rs 10 in the minimum support price for rubber, a crucial cash crop for the state, raising it from Rs 170 to Rs 180.

The Finance Minister opened up on the government's intent to establish foreign university campuses in the state. He said that permission would be given to set up 25 new private investment parks in the state in the coming year.

For the smooth and time-bound execution of major projects such as Vizhinjam Port, Cochin Metro and Kannur Airport, a sum of Rs 300.73 crore has been earmarked.

In the budget, the agricultural sector has been granted a sum of Rs 1,698.30 crore, while the cooperative sector has been allotted Rs 134.42 crore.

According to the minister, the tourism industry is witnessing growth. A budget of Rs 351 crore has been assigned to it for the fiscal year 2024-25. Additionally, the sector aims to attract investments worth Rs 5,000 crore.

Other notable allocations include Rs 1,132 crore for the Life housing scheme, Rs 507.14 crore for IT, and Rs 235.55 crore for Science, Technology, and Environment, among others.

What is Costlier?

• Lease stamp duty rates
• Indian Made Foreign Liquor (IMFL) prices are set to increase by Rs 10 per litre.
• The will be a rise in charges on electricity as part of an additional tax collection measure. The duty on those generating their own electricity for personal consumption has been increased from 1.2 paise to 15 paise.
• The duty for the sale of electricity has been elevated from 6 paise per unit to 10 paise.

What is cheaper?

• Tax on registration of All India Tourist buses