Kerala seeks 4,500-crore package to build climate resilience ahead of Feb 1 Union Budget

THIRUVANANTHAPURAM: One of the demands made by Kerala to the union government is a Rs 4,500 crore assistance for climate resilience activities in the pre-budget consultation. The state is quite optimistic about the proposal as it will help to enhance its efforts to develop a single overarching climate response strategy.

The state is expected to make some announcements regarding capacity building for climate resilience in its upcoming budget. According to the estimate of the state government, Rs 11,650 crore is needed for a package of measures to address coastal erosion. For the Punargeham rehabilitation project for fisherfolk, Rs 186 crore is needed and for modernising fishing harbours, Rs 500 crore.

Kerala has sought Rs 1,000 crore union budget allocation for projects to address human-interface with animals. Some of the other major demands include a Rs 24,000 crore special package to compensate for the revenue loss to the state and another for the rehabilitation of landslide victims in Wayanad.

The special package demand is in the backdrop of the huge revenue losses to the state from the stoppage of GST compensation and revenue deficit grant, and the cut in borrowing limit. In the view of the state, the centre’s unscientific borrowing norms has put the state in a financial crisis.

The Wayanad rehabilitation package is to fund the township projects conceived by the state for rehabilitation of the victims. The state expects a positive response since the union government had declared it a disaster of extreme severity.

In his speech, Finance Minister K N Balagopal pointed out that the country is facing an economic slowdown. “When Union Finance Minister Nirmala Sitaraman presented the last budget, she predicted that the country would reach 7.3 pc economic growth. But the real growth of the Indian economy in the second quarter was only 5.4 pc,” he said.

“At the pre -budget discussion, Kerala has demanded immediate steps to revive the economy. Also, state-specific demands like the special package to make up for revenue loss and the one to rehabilitate the landslide victims were put forward," he said.