A HEALTH FRIENDLY BUDGET, INDEED!

To be chronicled as a budget fighting a pandemic.

Emphasizing on a new stand of life ‘Health before everything or Health first,’ Finance Minister K N Balagopal presented the first budget of the second Pinarayi Government in the Legislative Assembly of Kerala on Friday, 4th of June, 2021. The main highlights of the budget include Financial Assistance to the Healthcare sector with regard to the existing Covid – 19 scenarios and the revival of the Economic Structure of the State. Just a little peek into the outline of the budget, Finance Minister has kept the State’s economic needs secure in his hands. The updated budget has explained itself transparently including why reforms were made in the pre – proposed budget of 2021 – 22.

The predecessor of Balagopal sir, Dr. T M Thomas Issac had already presented a comprehensive budget for the financial year 2021 - 22 on behalf of the first Pinarayi Government in January 2021. It had several detailed suggestions, much of which were based on long term perspectives. The first budget had taken into account the changes that would have happened in the post – Covid period and also, the changing economic structure of the world and the Finance Minister stated that the new government is committed to implement all the instructions included in it. However, while preparing the budget, a few events weren’t seen in advance which includes the second wave of Covid – 19 pandemic, the extreme spread of the disease and the concerns regarding the third. This health emergency demanded for certain changes in the development strategy of the state and it is to be noted that resisting as well as defeating the virus has now become a pre requisite for it. Recovering the development strategy of the state will be possible only if the state can reduce the impact of the second and prevent the third wave of the pandemic. This is when the minister envisaged that we are all forced to accept a new stand of life, ‘Health before everything or Health first.’ The policy of the budget will be to ensure good health, good food and increased employment, income and economic status. In this manner, if Kerala becomes the first state to conquer the virus, it will be exposed to more opportunities towards economic progress. As mentioned above, Dr. T M Thomas Issac in his budget provided instructions on almost everything that were supposed to be done during this challenging phase. In light of the second wave of Covid and its impact on the society and economic structure of the state, the budget of the previous government will be implemented with necessary reforms. The LDF Governments prepared its manifesto taking into account the future developments of Kerala. Today, the state is facing two main challenges. The first is the capital investments which are now lesser than the national average and how it could be increased to make faster economic growth. The second is the problems of unemployment and unavailability of job opportunities. The government has been trying to resolve the first challenge through investments from KIIFB and in case of the second one, the quality of higher education will be improved. Also, it will be linked to the IT sector. New institutions would be formed to ensure self employment and work from home opportunities which would in turn increase family income and lead to growth of the economic structure.

A Covid package worth 20,000 crore were already announced in the previous budget to help people who suffered the impact of various policies including lockdown at the earlier stages of the pandemic. Kerala was the first state to make such a provision in the country. In spite of the second wave, to curb the challenges faced by the health and economic sectors, a new package has now been introduced. It would also allocate an amount of 20,000 crore which would provide 2,800 crore for health emergency, 8,900 for those facing subsistence crisis and 8,300 crore for economic revival (loans and subsidies shall be provided). At the time of announcement of the budget in January, there was an assumption that the pandemic was subjected to control as the number of cases and number of deaths per day was reduced to 3610 and 19 respectively. It was very much expected that the economic production, employment opportunities and the tax revenues would be freed from depression and that they would return to the path of progress. Also, there was an expectation that there would be sufficient decline in the expense for pandemic related requirements. But as the second wave of Covid -19 emerged, it destroyed all these calculations and the pandemic overran all the preparations of the government. The increase in number of affected persons put much pressure on the advancements in the health facilities; mutations in the already existing virus lead to a vigorous spread of the disease. The medical practitioners and other systems who were intending to resist the spread of the disease faced adverse challenges. This was when the government wanted the state to go under lockdown and triple lockdowns. The number of people affected showed a sharp increase to a number more than 43000 and number of deaths was 213 per day. Withstanding this stage became possible with the maximum strength and support of health facilities.

The intensity of the second wave and the expectations of the third denote that the war to resist the virus is not yet over. Although the state governments were facing a crisis, the Central Government announced its vaccine policies, unscientific distributions and exports that gave the corporate, a scope for corruption. The only way through which the government could save the lives and health of its people and make a revival of the economy is to moderate the impact of the second wave and prevent a third one. If at all a third wave emerges, health facilities must be used effectively. It is in this context, that this new, updated budget is presented.

The government intends to furnish a new programme which comprises of six different categories.

With regard to the health sector, Isolation wards with 10 beds each will be built in all CHSE Taluk District General Hospitals to fight infectious diseases. An amount of 636.5 crore has been provided, 3 crore per centre. Conversion of existing autoclave rooms into CSSDs will be implemented at all Taluk District General Hospitals, to reduce nosocomial infections; with a view to build 25 CSSDs in this year, 18.75 crore has been allotted. A new special block will be constructed at all Medical Colleges to control infectious diseases, prevent airborne diseases and to handle other severe infections like Covid – 19, Ebola and Nippah. 50 crore has been allotted to set up new isolation blocks at Trivandrum and Kozhikode medical colleges. As the health experts are facing a third wave of Covid -19, it is necessary to develop new systems to treat children effectively at times of emergency and as a first step to this, the bed capacities of pediatric ICUs will be increased. Also, new pediatric ICU wards will be built in district hospitals where there is enough availability of space and selected general hospitals and medical colleges. 25 crore is allotted for the same. The most important requirement of the time is oxygen availability. In order to treat the adversities of Covid – 19, a liquid medical oxygen plant with a capacity of 150 metric tons will be established in Kerala and along with that, a tank with storage capacity of 1000 metric tons and a tanker facility will be ensured. Approved and reliable construction companies will be entrusted with these responsibilities and the project would be implemented as a joint venture of the government and the companies. 25 lakhs will be provided initially, to prepare a detailed report of the project and meeting its expenses. An institution in the model of the American Centre for Disease Control in the state will be an asset to the field of medical research and beneficial for the prevention of diseases; an amount of 5,00,000 will be allocated for the same.

Free vaccine, the government has a critical responsibility to provide free vaccines to as many people as possible, at faster rates. The state of Kerala is ready for vaccine distribution even though the expenses must be met by the government and it would ensure that all people of the state gets vaccinated as early as possible. 1000 crore will be provided for vaccination persons above the age of 18 and 500 crore will be given for the purchase of equipments. The government wants to ensure that the state gets the best vaccine distribution. In the budget, it is envisaged that the Human Resource Planning shouldn’t be confined into the group of medical practitioners alone. It must be extended to other sectors like police, staffs at local bodies, peoples’ representatives etc. The good health, protection and welfare of these communities must be given due importance and special effort will be made in this regard. An amount of 10 crore will be allotted for the purchase of products and other equipments required by the health care sector, vaccine research and manufacture. 20 crore has been allocated for distribution of medicines through Aayush departments.

New advanced loan schemes for financial rejuvenation will be implemented through commercial banks and primary cooperative societies. A comprehensive package of 1500 crore for rehabilitation, developments and protection of coastal areas has also been announced. An amount of 10 crore has been allocated for Agricultural development. A new package for flood control through various measures has been introduced; protection of canal sides, ensuring their clean environment, increasing their depth through desilting and removal of excess accumulated soil etc. The implementation of these measures would cost 500 crore and an amount of 50 crore will be provided initially. The Fisheries sector has been allotted with an amount of 5 crore. The efficient working of the Department of Food and Public Distribution will be ensured. Number of mobile Maveli stores will be increased and computerization of Ration centers will be enabled. The existing Rubber subsidy arrears will be paid. Kudumbashree Missions has been allocated a sum of 1500 crore in order to conduct various programmes; it also aims to promote them to a new level and organize welfare programmes for women. Health grant for local self – governments account for 559 crore of the budget for the financial year 2021 – 22, a part of 2968 crore. The budget also refers to implement a reform in the existing labour budget of the centre which has provided 7.5 crore; the government will increase the number of working days into 12 crore days. Also, more amounts will be allocated to Ayyankali Project, if necessary.

Poverty Alleviation through local self government bodies has attained significance and a package worth 10 crore has been allocated.

The budget has given certain contributions to the Educational sector as well. As our students have undergone a shift from attending classes physically to a confined space within the four walls of their homes, they’re subject to several emotional conflicts. The government has formed plans to alleviate such issues and also, a committee consisting of educational, health and sociological experts will be constituted to study this problem. Covid has created a lot of tensions among parents and children about the future and they’re accompanied by physical and psychological health issues. A new provision of tele online counseling will be provided. To promote the creativity of students, the selected arts and craftworks of students will be exhibited through Victers channel. An amount of 10 crore has been allocated for online education too. KSFE will be implementing a new project to provide 2 lakh laptops for children so that they can have access to online education. Special schemes for higher education will also be given. The amount allocated for knowledge economy will be increased from 300 to 200 crore.

Tourism is considered as the backbone of the economy of Kerala. It has significant influence on the state’s GSDP. The sector gives direct employment to 5 lakh people. 20 lakh people are indirectly dependent on it too. Currently, the tourism sector has been facing challenges; the Covid – 19 pandemic has put people into subsistence crisis. Kerala has also been affected with the 80% decline in the international sector. The recovery of tourism sector will only be possible after the eradication of Covid. However, necessary preparations will be made. Possibilities in the tourism sector during the post – covid period would be analyzed and new schemes will be implemented for which 400 crore have been allocated (through loans).

‘Entrepreneurship Assistant Projects’ has been provided with an amount of 25 crore. It will be implemented by the Directorate of Industry and Commerce. 15 crore has been allocated to multi industry facilitations.

Development programmes for the Scheduled Castes and Scheduled Tribes communities has been envisaged to be implemented. Two special programmes have been announced. The first is the provisions of 10 lakh to 100 selected people to start their own enterprises (loans will low interest rates), 10 crore has been allocated for the same. The second is the assistance for members of these communities. Those who have exhibited their talents will be given opportunities to continue to work in their specific fields. 15 crore will be provided, 1 lakh per person for 1500 persons.

1000 crore will be provided in loans for assistance to expatriates who’ve lost jobs; 170 crore for welfare schemes for expatriates.

With regard to transportation, 3000 diesel buses will be converted into CNGs. An expense of 300 crore has been expected and in the current financial year, 100 crore will be provided. Those who use two wheelers for home delivery, fishermen, newspaper distributors, small scale workers etc, will be provided with electric vehicles. For this, a new loan scheme will be established and in 2021 -22, 10,000 electric scooters and 5000 auto rickshaws will be made available which would cost an amount of 200 crore. 5 crore has been allotted for the scientific study of effective traffic control to reduce traffic jams and other expenses. To conduct research relating to Renewable energy and also to create general awareness on the same among the public, a Centre for Renewable Energy must be established. 10 lakhs have been allotted for this purpose.

5 crore will be given for social welfare schemes, for establishing smart kitchen project. A government package for children who have lost parents due to Covid has been announced under which an amount of 3 lakh will be given as a lump sum amount. Costs of education until their 18th age will also be taken care of by the government and 5 crore has been allocated to this. Under Cultural category, Memorials for K R Gouri Amma and R Balakrishna Pillai will be allocated with 2 crore each.

A new project will be inaugurated to make all the government services available online to people. All the departments will undergo preparations for the same including e – office, e – file systems. Village office services will be converted into smart services. A venture capital fund of 1000 crore corpus will be allocated to help small scale industries. A committee will be constituted with this objective and it will be provided with 1 crore.

Even though increasing tax revenue is inevitable, new tax regulations were not announced in the updated budget of the second Pinarayi Government. The Left Democratic Front envisaged that they will provide to the needs of their people and land even if it costs them to acquire loans. Alike their first government, they will follow the same policies too. The newly updated budget explained how the predecessor budget could be implemented practically. Covering almost all sectors, it has envisaged that more importance should be given to the ‘health of men’ on land and the economic structure of the state. Sri. Balagopal has made humanitarian efforts in not increasing tax revenues. The budget has been vigilant to the challenges Covid – 19 pandemic has put in front of the state and its community. Except in case of practicability, the revised budget for 2021 – 22 is foresight in nature compared to the previous one.

Teresa Nikitha Emerson I MCJ