Karnataka Budget 2011- Farmers to get loans at one-percent interest

Karnataka Budget 2011- Farmers to get loans at one-percent interest

Mangalore Today News Network

Bangalore, Feb 24: One per-cent interest loans for farmers, a 31-km mono rail network and a new elevated highway for Bangalore and no pay hike for state government employees are some of the highlights of the coming financial year’s state budget. 

 

Presenting the budget in two parts, with a separate budget for the agriculture sector for the first time, in the assembly here, Yeddyurappa said that as per the revised estimates, revenue surplus would be Rs.1,595 crore and fiscal deficit would be Rs.11,700 crore or 3.07 percent of the gross state domestic product (GSDP).

To raise additional funds for meeting increasing developmental expenditure in the new fiscal, the chief minister doubled the value added tax (VAT) on jewellery and articles of gold and other metals to two percent from one percent.

VAT rates on these goods are currently taxable at 13.5-14 percent.“Similarly, I propose to double the betting tax on horse racing to eight percent from four percent and excise duty to 20 percent from 10 percent across the 17 slabs,” the chief minister, who also holds the finance portifolio, said in his hour-long budget presentation in Kannada.

VAT exemption on paddy, rice, wheat, pulses and other agriculture products, will continue in the new fiscal. Coconut and de-oiled rice bran will also be exempted from VAT.

As part of resource mobilisation efforts, the chief minister also sought to levy a fixed stamp duty of Rs.1,000 on trusts set up for the public, religious and charitable purposes.

“Stamp duty on trusts other than public, religious and charitable trusts will be levied at six percent on transfer or disposition of property. I propose to raise Rs.300 crore from the proposals on stamps and registration,” Yeddyurappa said.

To allocate Rs.20 crore every year for urban transport fund, the budget proposes to raise the cess by one percent to 11 percent with no changes in the motor vehicle tax. Total receipts for this fiscal (2010-12) are expected to be Rs.83,729 crore, including Rs.66,313 crore from revenue and Rs.17,416 crore from capital, while total expenditure is estimated to be Rs.85,319 crore comprising Rs.65,034 crore as revenue outgo and Rs.20,285 crore as capital outgo.

“We have seen buoyancy in tax collections this fiscal. We have collected Rs.38,049 crore from various taxes as against the estimated Rs.36,228 crore, registering 24.4 percent increase over the previous fiscal (2009-10),” Yeddyurappa told the members. With additional resource mobilisation of Rs.1,020 crore, the total tax collection in the new fiscal is estimated to be Rs.43,817 crore.

For the new fiscal, the revenue surplus is estimated to be Rs.1,279 crore and fiscal deficit Rs.12,482 crore, which will be 2.87 percent of GSDP. 

Highlights of farmers budget :

Total size of budget is 85,319 crore

*Karnataka agricultural development policy to be strengthened
*World agriculture investment summit in June 2011
* New courses for diploma in agriculture
*Stipend for agricultural students
*Rs 2 lakh insurance for farmers
*Training to be given to five lakh farmers in organic farmers
* Rs 289 crore sanctioned to improve Krishna project
*Rs 17,850 crore allocation for the agricultural sector
*Rs 125 crore for Bio Farming and Rs 100 crore for drip irrigation
*Rs 1000 crore earmarked for ’Suvarna Bhoomi’ project
*Rs 3900 crore for supply of electricity to IP sets
*Better IP sets to be provided to farmers to reduce power consumption
*RS 2123 crore for uninterrupted power supply to farmers
*Rs 1000 crore for renovation of ponds and lakes
*Desilting and rejuvenation of 23,000 lakes
*Intrest free loans for higher education for farmer’s children
*Agriculture revolving funds to be increased to Rs 1000 crore
*Rs 100 crore for small ports
*Rs 200 crore for organic farming
*State biofuel board has been set up
*Seeds to be supplied to farmers at 50 percent subsidy
*Rs 9 crore to encourage paddy and sugarcane production
*Single window scheme to help farmers
*Rs 25 crore for coconut cultivation
*More neera processing units to be set up
*Exemption of VAT for floriculture
*Rs 2 crore to combat diseases that afflict areca plantation
*Rs 10 crore for APMCs across the state
*Veterinarian Colleges to be set in Gadag and Athini
*Mega dairy at Mysore, KMF will mobilise funds for this
*Rs 2.5 crore for prevention of epidemics
*Rs 10 crore as incentives for fish farming
*Construction of 50 new fish markets at Rs 5 crore
*2000 houses at Rs 60,000 each for fishermen
*Software programme to be developed for documentation of land records


State budget highlights

*State plan outlay for 2011-12 kept at Rs 38070 crore
* Plan expenditure has increased by 16.1 percent
*Non-plan expenditure is expected to increase by 7.7 percent in the first 10 months
*State Government is contributing 50 percent of cost of 16 railway projects
*Rs 67792 earmarked for infrastructure development
*Rs 120 crore for new airports at Shimoga, Hassan, Bellary, Bijapur, Gulbarga
*Rs 15 crore for Mangalore airport
*GAIL to set up company in Bangalore
*600 MW power plant to come up in Udupi
*Rs 30 crore for sharing cost of railway over bridge and under bridge projects
*Rs 1300 crore for highway development
*42.3 KM Metro route to be ready by 2013
*Rs 50 crore for Kodagu road development
*No implementation of sixth pay commission
*VAT hiked from 13.5 percent to 14 percent
*Rs 10 crore for Karavali region
*Rs 250 crore for students bicycle scheme
*Development of 20 KM road in each of 189 assembly constituencies
*1000 crore for roads in rural areas
*1250 crore for drinking water projects
*400 crore for ’Suvarna Gramodya Yojana’
*Rs 86 crore for mother and child welfare
*760crore for development of backward classes
*Rs 400 crore for ’Bhagyalakshmi’ scheme
*Rs 326 crore for minorities
*Rs 5 crore for ’Haj Mahal’ in Bangalore
*90,000 crore to generate employment
*Rs 10 crore to develop Hampi city
*Rs 100 crore theme park in Hampi
*Rs 10 crore for Mysore Dasara festival
*35 Karnataka- One centers modelled on Bangalore-One centres in 9 cities
*Rs 1742 crore for social security schemes
*Rs 40 crore for programmes connected with e-governance


Sector-wise expenditure

*Commerce and industry - Rs 1457 crore
*Urban Development - Rs 7710 crore
*Revenue department - Rs 2415 crore
*Women and Child welfare department -  2319 crore
*Health and Family - 3254 crore
*Housing - 1194 crore
*Revenue -  2415 crore
*Education - 12284 crore
*Water resources - 7800 crore
*Energy -  8523 crore
*BWSSB - 1150 crore
*Animal husbandary and fisheries - 1077 crore
*Public works department - 4319 crore
*Infrastructure - 67792 crore
*Tourism sector -  Rs 250 crore
*Higher education  -  Rs 2002
*Interior admin and transportation -  Rs 3602 crore
*Building warehouses - Rs 100 crore

Bangalore
Rs 4770 for overall development of Bangalore

*31 Km network of monorail in Bangalore
*Potable water supply at Rs 3384 crore
*BDA to form three new layouts
*12 parks and entertainment centres to be developed
*Sculpture park to come up on an eight acre plot
*International conventional centre near BIA at Rs 150 crore
*Rs 350 crore for BBMP
*Elevated road from Minerva circle to Hudson circle via JC road
*10 new vehicle parking lots
*4 super speciality hospital in four zones of the city under PPP
*10 Bus stands to be built in BBMP area
*Tax hiked for Bangalore turf club


Kannada language and development

*Rs 5 crore towards financial assistance to Kannada writers to publish their work
*Rs 50,000 for celebrating Basava Jayanthi, Kanaka Jayanthi, Valmiki Jayanthi and Ambedkar Jayanthi
*Rs 1 crore for Janapada parishad, Janapada university in Shiggaon
*Rs 25 crore for establishing Basava International centre
*Rs 10 crore for Kala Bhavan in honour of Kempegowda