The Hindu Business Line : Contributory pension scheme to cover all Kerala Govt employees

Mr Purushothaman set out in detail the circumstances necessitating the incorporation of the proposal in his first Budget as Finance Minister in the Oommen Chandy-led Government.

Salary, pension and interest payments in 2003-04 saw outgo of Rs 5,067 crore, Rs 2,409 crore and Rs 3,328 crore respectively, aggregating Rs 10,804 crore.

This accounted for 91 per cent of the total revenue receipts and 70 per cent of the total revenue expenditure for that year.

As per figures available for the last 10 years, expenditure on salary has been increasing at a compounded annual growth rate (CAGR) of 11 per cent, pension at 18 per cent and interest at 17 per cent.

If this position were to continue, pension payouts would exceed salary in the next 10 years.

Another supportive reason for the decision was that the Centre and many State Governments had already switched over to the contributory pension regime.

Farm sector allocations: In the agriculture and allied sectors, a massive programme for reintroducing rice cultivation in 10,000 hectares of barren rice fields will be taken up during the current fiscal under the larger scheme for providing employment to one lakh youth.

A Rs 64.55-crore scheme for the coconut sector provides for de-weeding plantations of diseased trees and their replanting.

The Finance Minister has set apart Rs 20 crore for the development of pepper cultivation.

Risk Fund for farmers: The State Government will launch a crop insurance scheme for agricultural products and a Risk Fund Scheme to write off liabilities of farmers who die during the period of loan payment.

The self-help programme with Nabard will be extended to all districts.

The Centre has extended its approval to an action plan for modernising the State police at a cost of Rs 61.65 crore.

In other allocations, the secondary education sector will get Rs 35.10 crore and higher secondary education Rs 18.20 crore.

A new employment programme has been prepared for those who are displaced by the ban on lotteries.

It will make available to each displaced person Rs 10,000 as grant and up to Rs 40,000 as loan from financial institutions.

At least 20,000 persons are expected to be rehabilitated in this manner. An allocation of Rs 20 crore has been made for this purpose.

Funds for local bodies: The untied grant-in-aid under the Plan for local self-Governments has been enhanced to Rs 1,375 crore.

Village panchayats will be given Rs 40 crore and municipalities/corporations Rs 10 crore each for implementing a service delivery project.

Another Rs 38.84 crore will be allocated for 23 schemes under the Modernising Government Programme (MGP).

An allocation of Rs 82.16 crore has been made for seven Centrally sponsored schemes.

Other allocations for local bodies include a general-purpose grant of Rs 255.59 crore and a maintenance grant of Rs 401.64 crore.

Power sector

Various allocations under the power sector are: Generation - Rs 170.54 crore; Renovation and modernisation - Rs 42 crore; Transmission - Rs 297.53 crore; Distribution - Rs 393 crore, and special projects under the Accelerated Power Development Reform Programme (APDRP) for Thiruvananthapuram (Rs 163 crore) and Kochi (Rs 200 crore).

An allocation of Rs 30.5 crore has been made for various activities of the R&D institutions under the Kerala State Council for Science, Technology and Environment.

Job generation: In employment generation programmes, a pilot programme for reviving and strengthening weak or sick industrial units all over the State is expected to engage 40,000 persons.

A joint venture between the Kudumbashree anti-poverty programme and the Department of Animal Husbandry for starting 350 breeder nurseries and associated goat rearing units will employ another 20,000.

A `Norka Centre' will be set up in Thiruvananthapuram for providing all kinds of facilities to non-residents at a cost of Rs 4 crore, the Finance Minister said.

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