Infrastructure, HRD, agriculture and welfare schemes have been given 68 per cent of the budget outlay
It focusses on sectors that facilitate long-term growth
Yeddyurappa hints at disinvestment in government undertakings
Bangalore: Chief Minister B.S. Yeddyurappa described the budget presented by him to the Legislative Assembly on Friday as “the best that could be done under the circumstances”.
He said: “It is an ambitious budget and the outlay has been raised by nearly Rs. 10,000 crore compared with last year. It is a growth-oriented budget and focusses on sectors that facilitate long-term growth. It is also premised on the State economy attaining high growth leading to higher revenues for the Government. Sectors such as infrastructure, human resource development, agriculture and welfare schemes have been given 68 per cent of the budget outlay.”
In his post-budget meeting with presspersons , the Chief Minister related the difficulties that the government has had to face over the past year, particularly in the first half when the mobilisation of resources took a big dip following the global economic downturn . The recovery in the last few months has, however, been of a high order .
Further, the scarcity conditions during the last kharif season followed by unprecedented heavy rains in September and October in 15 districts caused catastrophic damages to about 4,300 villages, collapse of 6.55 lakh houses and rendering homeless no less than 1.80 crore people.
The State with the support of the Union Government rendered assistance to the people, and a large number of industrialists, charitable organisations and non-government institutions came forward to construct houses under the “aasare” programme. “I wish to express our gratitude on behalf of the people of the State to the Centre for providing timely assistance in managing the unprecedented crisis,” he said.
Asked on how the State Government proposes to raise the requisite funds for the quantum jump in the State Plan Size of Rs. 31,000 crore for the coming year (compared to the estimated plan expenditure of Rs. 25,967 crore in the current year), the Chief Minister said: “It is necessary to increase the non-plan capital receipts with a view to increasing the capital expenditure of the State.
In the coming year, efforts will be made to sell specific extent of lands at good prices and to generate resources through disinvestment in Government undertakings which will also facilitate in running these enterprises more profitably.”
Mr. Yeddyurappa said the rate of growth of the State's economy, which was 4.5 per cent at constant prices and 12.8 per cent at current prices in 2008-09, is estimated to be 5.5 per cent at constant prices and 10.3 prices at current prices in 2009-10. Even though this estimated growth rate can be termed satisfactory in the background of the economic slowdown, it is imperative to achieve a fast growth rate.
“The financial position of Karnataka is more sound than other States. Its tax revenue is more than 10 per cent of the GSDP which is the highest in the country,” Mr. Yeddyurappa said.
With reference to fiscal discipline , the Chief Minister said, debt to GSDP ratio at 0.26 per cent here is much better than .33 of other States.