The overall poverty ratio in the State has declined from 24.9 per cent in 2004-05 to 18.52 per cent in 2009-10.

The Karnataka Economic Survey 2011-12 stated that “there is a decline in the incidence of poverty based on the Planning Commission's poverty line”. The State had set a goal of achieving 12.4 per cent poverty ratio in the 11th Plan period (2007-12) from the level of 24.9 per cent in 2004-05. Although the State has not been able to achieve the target, it has made good progress towards poverty reduction by achieving an overall reduction 6.5 per cent, it said.

The poverty ratio stood at 15.82 per cent with 5.87 million poor in rural areas (20.80 per cent with 7.81 million in 2004-05) during 2009-10 and the ratio in urban areas stood at 23.54 per cent with 5.09 million poor (32.60 per cent with 6.38 million poor in 2004-05) in 2009-10.

Per capita net income of the State, at current prices, is estimated at Rs. 69,493 in 2011-12, an increase of 14 per cent as against Rs. 60,946 in 2010-11.

The State's own tax revenues increased from Rs. 25,987 crore in 2007-08 to Rs. 43,817 crore in 2011-12. The ratio of non-tax revenue to total receipts has been continuously declining over the years.

Further, the State has one of the lowest non-tax revenues to the GSDP ratios in the country. It has hovered around the 1 per cent mark over the past two to three years. This is due to low recovery of costs, the survey said.

In many departments, the revision of user charges, fees and fines and other such non-tax receipts has not taken place for many years. Even with revision of rates and better collection mechanisms, the increase in revenues from this avenue may not be large due to the existing low base.

Interest spread of government borrowings has been negative during 2007-12 meaning that the State's borrowings were more expensive than the loans advanced by it. The recipient boards and corporations are unable to service the loans given to them by the State government in view of low recovery of cost of their services from the consumers.

The survey found that the return from investments of more than Rs. 32,483 crore by the State government was just 0.1 per cent during 2010-11. While the government is borrowing from the market for these investments, the returns are much lower.


  • Per capita net income of the State estimated

    at Rs. 69,493 in 2011-12

  • Tax revenues increased to Rs. 43,817 crore

    in 2011-12


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