With a clear eye on the forthcoming elections to the Karnataka Legislative Assembly this summer (2018), Chief Minister Siddaramaiah, on Friday, offered several sops to various small and marginal communities, including free bus passes for all students from 2018-19.
Mr. Siddaramaiah, in the last Budget of the ruling Congress government in the Legislative Assembly, proposed to waive loans up to ₹50,000 availed by shepherds from cooperative banks (₹52 crore total) and loans availed by below poverty line (BPL) families from Karnataka Khadi Board.
He also announced providing loans up to ₹50,000 at zero per cent interest for fishermen and increase of old age pension from ₹500 to ₹600 for the benefit of 48 lakh senior citizens and destitute.
The Chief Minister, who overall presented his 13th State budget, said the current budget aimed at building Nava Karnataka to realise the new aspirations in the coming days.
Mr. Siddaramaiah provided many incentives for people belonging to AHINDA (Kannada acronym for minorities, backward classes and Dalits) in a move to to prevent youth from backward classes and Dalit communities from supporting the BJP.
For the first time, the budget’s total receipts are estimated at ₹2,02,297 crore in 2018-19. The fiscal deficit is expected to be ₹35,127 crore, which is 2.49% of the Gross State Domestic Product (GSDP). Total liabilities are at ₹2,86,790 crore at the end of 2018-19, 20.36% of the GSDP. “This is within the limit of 25% for 2018-19 mandated in the Karnataka Fiscal Responsibility Act.”
GSDP up
The GSDP in 2017-18 has increased to 8.5% against 7.5% in 2016-17. In this year 2017-18, the agriculture sector is expected to grow by 4.9%, industry by 4.9%, while the service sector is expected to register a growth of 10.4%.
Noting that there was a possibility of shortfall in tax collections in the short run, frequent changes in the FST regime and glitches in the IT system have also affected the tax collection, Mr. Siddaramaiah said.
Farm sector
The CM said there was decline in the number of farmers suicides in the State and proposed to introduce “Raitha Belaku” to give direct income assistance to farmers to mitigate their miseries. Under the scheme, ₹5,000 per hectare subject to maximum of ₹10,000 for each farmer would be given for growing rain-fed crops.
The Budget proposed to give a boost to organic farming, millet crops, groundnut and “Direct Seed Rice” cultivation methods. The allocation for agriculture is set at ₹5,849 crore in 2018-19.
To mobilise additional revenue, the Budget proposed to increase the existing rates of excise duty on Indian Made Liquor by 8%.
New policies
The Budget proposes new State Fodder Security Policy, new Textile Policy, Feature Film Tourism Policy, Logistic Policy, Innovation Policy, and Policy for Labour Intensive Industries. It has also proposed to establish “Nirbhaya Kendras” in all offices of Police Commissioners in the State.
Quota
The Budget has also proposed to provide 4% reservation in Group A and B posts to persons having disability as per the Rights of Persons with Disabilities Act, 2016. The government has already reserved 5% in Group C and D posts.
