CM Bommai presents revenue surplus Budget, outlay crosses ₹3 lakh crore

CM Bommai presents revenue surplus Budget, outlay crosses ₹3 lakh crore

Mangalore Today News Network

Bengaluru, Feb 17, 2023: Aided by a buoyant economy, Karnataka Chief Minister Basavaraj Bommai presented a ‘please-all’ revenue surplus budget with no tax hike on February 17, less than 100 days ahead of Assembly elections in the State. The budget outlay has, for the first time, crossed the ₹3 lakh crore mark, and is pegged at ₹3,09,182 crore, up from ₹2,65,720 lakh crore in 2022-23.

 

Fiscal deficit has been reined in at ₹60,581 crore, or 2.60% of Gross State Domestic Product (GSDP). With borrowings of ₹77,750 crore, the liabilities at the end of 2023-24 are pegged at ₹5,64,896 lakh crore, or 24.20% of GSDP, thereby satisfying all parameters of Karnataka Fiscal Responsibility Act, 2002.

The budget has proposed a revenue surplus of ₹402 crore, breaking the trend of revenue deficit budgets for the past two years, when the budgets did not comply with the Karnataka Fiscal Responsibility Act, 2002.

The Budget speech is also being seen as a poll pitch for the ruling BJP and an exercise in “articulating the legacy” of Mr. Bommai. CM Bommai had earlier described the Budget as a “Budget for the voiceless”, with a focus on “farmers, working class, poor, and women”, setting its political tone.

What stands out in Bommai’s Budget

The Budget announced an increase in interest-free short term loans to farmers from Rs 3 lakh to Rs 5 lakh. Additionally, Rs 25,000 crore will be distributed to more than 30 lakh farmers in the state.

Rs 10,000 crore has been earmarked for additional subsidy for Kisan credit holders. Moreover, life insurance will be provided to 56 lakh small and marginal farmers. Rs 500 per month will be provided to landless women farm labourers.

The government has also set aside Rs 1000 crore for the Mahadayi river project.

All major syllabus and reference books will be translated to Kannada to enable people to write exams in the regional language for all professionals courses.

All school and college-going girl students will be given a free bus pass.

The government will start IVF clinics in four locations, the CM announced in the Budget on Friday.

The government has allocated Rs 30,215 crore under the SC-ST subplan this year.  Rs 375 crore will be allocated to various mutts belonging to backward classes communities while Rs 596 crore will be set aside for development corporations of various backward classes.

Allocation to Kalyan Karnataka region has been increased to Rs 5000 crore as well.

A Start-up park near Bengaluru airport will be set up at a cost of Rs 30 crore, as per the Budget announcement.

Professional tax exemption limit has increased from Rs 15,000 to Rs 25,000 as well.

Further, the government will spend Rs 50 crore on new vehicles.

Overall, a grant of Rs 9,698 crore has been allocated for Bengaluru. A five km elevated road from Tin Factory to Medahalli will be constructed at a cost of Rs 350 crore. An integrated flyover from Yeshwanthpur railway station to Mathikere and BRL road will also be constructed.

An additional 120 km of roads will be white topped at a cost of Rs 1000 crore. Rs 300 crore to repair roads in 110 villages have been added to the BBMP.

The city will also get 2000 new police posts.

Karnataka will get a Ram Mandir, which will be built at Ramdevara Betta in Ramanagara.

Additionally, Rs 1000 crore has been earmarked for renovation of various temples and mutts over the next two years.