Kerala Finance Minister Announced the Second COVID Package Of Rs 20,000 Crore

A second Covid package worth Rs 20,000 crore was unveiled in the inaugural budget of the second LDF government on Friday to address the pandemic's challenges.

Kerala Finance Minister K N Balagopal, who presented the budget, stated that out of the 20,000 crore package, Rs 2,800 crore will be spent on dealing with health emergencies. While Rs 8,900 crore would be distributed directly to those whose livelihoods have been impacted by the pandemic, Rs 8,300 crore will be utilised to offer interest subsidies for loans targeted at reviving the economy.

Balagopal said while hinting about the third level that the speed and intensity of Covid's second wave, as well as the threat of a third wave, suggest that the challenge is far from finished. In the following months, they may have to confront more obstacles.

At a cost of Rs. 636.5 crore, isolation wards for contagious diseases with ten beds would be set up in all community health centres, taluk, district, and general hospitals. In addition, the budget includes Rs.1000 crore for delivering vaccines to all adults over the age of 18, as well as Rs.500 million for the acquisition of allied equipment.

At Thiruvananthapuram and Kozhikode Medical Colleges, Rs 50 crore would be spent on isolation units, while Rs 25 crore will be spent on paediatric ICU units in selected District Hospitals and Medical Colleges.

He also mentioned that in the wake of the pandemic, no new tax suggestions have been announced.

Due to the large-scale devastation of the state's coast caused by cyclones and sea erosion, the budget has prioritised coastal protection.

According to the Finance Minister, the cost of this project, which is expected to be finished in five years, is estimated to be over Rs. 5300 crores. The KIIFB will contribute Rs. 1500 crore in financial assistance for the first phase of safeguarding the most vulnerable coastal areas.

He also said that financing scheme from NABARD for basic cooperative societies will be made available through Kerala Bank as part of fiscal rejuvenation efforts. In the financial year 2021-22, the goal is to give loans worth Rs. 2,000 crore.

The loans worth for Rs 1,000 crore would be made available at lower interest rates to help fledgling businesses in the agricultural, industrial, and service sectors get off the ground.

In the budget, the 'knowledge economy fund' for skill development, technological transformation, and higher education system reinforcement has been boosted to Rs 300 crore.

MSMEs will be able to obtain low-interest loans. KFC will make a loan of Rs. 400 crore available to the tourism sector in order to mobilise greater operating capital.