Beyond Business

A communist Minister of Finance introducing a pro-religion budget for 2010-11?

This can only happen in a place called Thiruvananthapuram. The ancient South-Indian city was built on seven hills of the west seaside and today is the capital of the state Kerala. It was here that Finance Minister T.M. Thomas Isaac, a member of the Communist party, presented next year’s budget proposal on Friday with tax reductions and allocations that support religious activities.

Finance Minister, Thomas Issac presenting the state budget in the Kerala Assembly in Thiruvananthapuram on Friday. Photo: C.Ratheesh Kumar

The finance minister want to exempt several religious items from tax, such as rosaries, japa mala (Hindu and Buddhist prayer beads), vibhooti (sacred ash placed on the forehead in Hinduism) and robes priest wear for the Holy Mass.

Sales of objects serving spiritual purposes are not significant contributors to state trading anyway.

But the former economist didn’t stop here.

The  proposal also suggests a 10 percent tax increase for liquor, which makes sense in a state where on average a person consumes 8.3 litres a year. The number seems minor beside the 12.2 litres of pure alcohol per Scots in 2009, although drinking measures in different parts of the world cannot be perfectly compared. Kerala is the top drinking state in India and the Christian Church has been vehemently fighting the spread of drinking culture.

If the market of Kerala’s drinkers is as insensitive to prices as the Finnish — Fins have never been drinking less because of the high taxes on liquor — Isaac’s move would only benefit the state government, which receives a large portion of its revenue earnings from liquor consumption.

Sales of Kerala State Beverages Corporation are tipped to touch $115.77 million (Rs 5,300 crore) this fiscal, which will mean tax and excise earnings of over $87.37 million (Rs 4,000 crore) for the state government, The Economic Times reports.

But for beer and also for wine, an essential ingredient for holy communions, Isaac proposes a 10 percent tax reduction.

The Jama-at mosque in Kerala

He would also give an allocation of $43,865 (Rs 20 lakh) both to the Haj committee that makes arrangements for the pilgrimage of Muslims and the Wakf Board that ensures that buildings or plots of land for Muslim religious and charitable purposes (wakfs) are properly maintained.

“I have got the satisfaction of having done this much,” said Isaac at the end of his proposal, “Still more to be done.  Sir, I am very optimistic:

Let time sound its big bell / Let the winds come and shake everything / Sleeping in the darkness of the covering mist / Are fruits, trees and all this world / Is the cold night standing still? / Why is the noble dawn so delayed? / How I long to hug lovingly / The daylight I saw so clearly in my dream.“

St. Mary's Forance Church in Bharanamganam, one of the most ancient places in Kerala, attracts thousands of pilgrims from all over India.