Budget proposals not final, stresses CPI-M

TRIVANDRUM: The Communist Party of Indiamarxist (CPI-M) that leads Kerala’s ruling coalition has hinted at a rethink on the proposal to increase taxes ater widespread protests.

The CPI-M’S state chief, MV Govindan, said the proposals in the 2023-24 budget that Finance Minister KN Balagopal presented in the state assembly this week were not final.

“We need to take hard decisions when they (federal government) are out to destroy us,” Govindan told reporters ater meeting Chief Minister Pinarayi Vijayan on Saturday.

“The budget proposals are to be discussed and adopted by the state assembly. Don’t draw conclusions before that. Let’s see.”

He accused the media of being silent when the federal government hiked the petrol and diesel prices to an exorbitant level, though the state levies more.

“It was the Centre which had constantly increased the fuel prices. It is the reason for the inflation,” Govindan said.

The budget proposed a steep hike in taxes on petrol and diesel, liquor and property transactions as well as fees for various government services.

These are a few avenues let for additional resource mobilisation ater the adoption of uniform goods and services taxes shared equally by the state and federal governments.

Thecongress-ledoppositionuniteddemocratic

Front (UDF) is on a warpath since demanding the minister withdraw his proposals.

UDF convenor MM Hassan termed it a “war cry” on the common people as the protests continued for a second day on Saturday.

Balagopal revealed that the decision to impose a cess on fuel and liquor was taken ater receiving a last minute communication from the central government to the state.

The Centre has been limiting the state’s borrowings in a phased manner to include the debts of Kerala Infrastructure Investment Fund Board (KIIFB) and Kerala Social Security Pension Limited (KSSPL) in the state’s kity.

“This was a last minute development. The order came on Thursday when the state’s budget preparation entered its last stage. It was a surgical strike on Kerala”, said Balagopal.

The Union government has warned that this condition will continue for the next year also. Kerala resorted to revamp tax rates in view of the rigid regulations over the state, the finance minister said.

The tax rate hikes and cess for fuel and liquor introduced in the state’s budget were not pre-planned.

Otherwise, the state would be forced to rely on more severe measures such as stopping welfare pensions.