Kerala Budget 2024: Beverage Price Hike Announced, Electricity Tax Increased for Specific Customers – Know Details

The Kerala government has announced the budget and there has been talk of an increase in liquor price and electricity tax for certain customers. Here's everything you need to know…

New Delhi: Days after Finance Minister Nirmala Sitharaman presented the 2024 interim budget to Parliament on February 2 during the budget session of Parliament, the various states have started presenting their budgets. Today, i.e. on February 5, 2024, the Government of Uttar Pradesh and the Government of Kerala presented their State Budget. KN Balagopal, Finance Minister of Kerala presented the fourth budget under the Pinarayi Vijayan government. Talking about the Kerala Budget 2024, liquor prices, court fees and electricity tax for specific customers have been increased in the budget. Here's everything you need to know…

Kerala Budget 2024: Liquor price hike announced

As mentioned earlier, the state government has announced an increase in liquor price in the Kerala Budget presented today. According to KN Balagopal, excise duty on Indian made foreign liquor (IMFL) has been increased by Rs 10 per liter to generate a turnover of Rs 200 crore. “The Abkari Act allows levy of gallon fee of up to Rs 30 per liter on the sale of foreign liquor made in India. This has been fixed at Rs 10 per litre,” Balagopal said.

Electricity tax increased for these customers, legal costs increased

In addition to the drink price, the electricity tax has also been increased, but for certain customers. The Budget also proposed an increase of 15 paise per unit in electricity tax for consumers generating and consuming energy for self-consumption, projecting an additional revenue of Rs 24 crore.
“From 1963 onwards, an electricity tax of 6 paise per unit has been levied on the sale of electricity. This has been increased to 10 paise per unit. An additional revenue of Rs.101.41 crore is expected,” the Finance Minister said.

Along with the electricity tax, the budget for the 2024-2025 fiscal year has also been increased. This is expected to generate an additional revenue of Rs 200 crore, the Finance Minister said. Balagopal further said that suitable amendments will be incorporated in the Kerala Court Fees and Suits Valuation Act, 1959 to find ways to mobilize more revenue from the area.

Social pensions NOT increased

Although widely expected, the minister decided not to increase social pensions, but assured that he would pay them on time next year. The minister allocated Rs 1,698.30 crore for the struggling agriculture sector and increased the minimum support price for rubber from Rs 170 to Rs 180. He also set aside Rs 50 crore for the eradication of extreme poverty and announced Rs 134.42 crore for the cooperative sector. Balagopal said that even though the state is facing an economic crisis and the Center is reportedly imposing financial constraints, the LDF government would not show any compromise on development.

Kerala Budget 2024: Key Highlights

Indicating that the state government would go ahead with its development plans, the finance minister said investments worth Rs three lakh crore would be brought into the southern state in the next three years.
He said Rs 1,698 crore would be set aside for the traditional agriculture sector and investments worth Rs 5,000 crore would be attracted to the tourism sector. “The tourism sector is growing. We are allocating Rs 351 crore for it in the financial year 2024-25,” he said. Amid rising demand from rubber farmers to increase support price, Balagopal announced an increase of Rs 10. “The minimum support price for rubber will be increased from Rs 170 to Rs 180,” he said.

The minister announced more support to the higher education sector and set aside Rs 250 crore for the Digital University. Balagopal said that besides straightening lines and doubling tracks, it is necessary to have a high-speed rail system for the future development of the state. “The state will continue its efforts to realize the K-Rail project. Discussions are on with the central government in this regard,” he added.

An amount of Rs 300.73 crore has been earmarked for the smooth and time-bound implementation of major projects such as Vizhinjam Port, Cochin Metro and Kannur Airport. The minister also blamed the Centre's economic policies and alleged neglect of Kerala for the southern state's financial woes.

(Input from PTI)