By Ashraf Padanna/Thiruvananthapuram

Emboldened by improved tax buoyancy and a record growth rate of 9.5%, Kerala yesterday unveiled a people-friendly annual budget that focuses on long-term sustainable growth and entrepreneurship.
Finance Minister K M Mani also announced a new savings and investment scheme for expatriates that would enable them to set up their own enterprises with an interest subsidy offered by the government. The scheme is to be implemented during the 2013-14 fiscal.
The Kerala State Financial Enterprises will set up an investment fund in which expatriates can park their money while working abroad. They will get an amount equal to their investment as loan with a 3% interest subsidy when they return and start their own business.
The KSFE will also extend technical and management consultancy for the entrepreneurs in co-operation with other government agencies.
The minister set apart Rs20mn for the scheme for the financial year beginning next month.
The veteran leader presented his 11th budget, a record both in number and length, amidst opposition protests demanding ouster of his party colleague P C George, the Congress party-led coalition government chief whip, for his unsavory comments against top Communist leaders.
Mani also raised the retirement age of new recruits in the government service from 56 to 60 and announced a slew of welfare schemes, including increased social security pensions, interest waivers for farmers and eradication of landlessness.
Noting that the state topped in GDP growth and per capital income among its southern neighbours, the finance minister proposed more measures to give further push to growth.
Budget allocations were made for the coastal highway connecting Kochi to Kozhikode, cycle paths and elevated walkways, modern parking facilities in towns, Kumarakom-Nedumbassery highway, check dams to solve water shortage, mobility hubs in cities and modern fish malls in Thiruvananthapuram, Kochi and Kozhikode.
“My objective is to see that the growth rate of the state touches double digits and that was the entire focus of my budget,” Mani later told reporters. “Agriculture is the backbone of our economy and if it flourishes, then development takes place. Agriculture practices have to go hi-tech and we also have to turn to bio-farming and for that there are various schemes for small farmers.”
All those holding marriages in three-star hotels and above and in auditoriums with more than 500 seating capacity will henceforth have to pay a 3% tax on the total expense of the marriage. The amount will go to a new fund called ‘Mangalya Nidhi’ meant to give a cash amount of Rs20,000 to women hailing from the weaker sections of the society when they wed.
Students with an annual family income of less than Rs300,000 will get scholarships of 75% expenses for their higher studies.
The minister set apart Rs500mn for writing off the interest on small farmers and announced an interest-free loan scheme for farmers holding below one hectare of land through co-operatives.
He proposed to raise the goods and services tax on products such as luxury vehicles and a range of consumer goods to 14.5% from 13.5%, from which he expects to earn Rs6.5bn additionally. Tax on cigarettes will go up from 15% to 20%, and that on foreign liquor from 100% to 105%.
The minister also rationalised various fees on land registration and transactions hoping to earn Rs2bn. He also cut the stamp duty on property registration by 2% across the board.
Leader of the opposition, V S Achuthanandan, termed the budget a gimmick by Mani to trick the public with the upcoming parliamentary elections in mind.