Karnataka Budget 2020-21: Highlights

Karnataka Chief Minister BS Yediyurappa said agriculture and rehabilitation for those hit by floods will be top priority and acknowledged financial constraints this fiscal.

March 05, 2020 11:37 am | Updated 05:48 pm IST

Chief minister B S Yediyurappa arriving at Vidhana Soudha to present State budget.

Chief minister B S Yediyurappa arriving at Vidhana Soudha to present State budget.

Karnataka Chief Minister BS Yediyurappa began presentation of the budget for 2020-21 in the Assembly on Thursday at 11 a.m., stating that agriculture and rehabilitation for those hit by floods will be top priority.

This is the seventh time Mr. Yediyurappa is presenting the  budget.

With revenue collection falling short due to economic slowdown and reduction in devolution of central funds to the state under GST regime, how Mr. Yediyurappa mobilises resources is being watched with curiosity.

He acknowledged this in his initial remarks and said that it had compelled the State to cut expenses in some departments. Mr. Yediyurappa said that the State would soon write to the Centre on financial allocation to the Centre being cut in the 15th Finance Commission.

Here are the highlights:

Petrol and diesel prices to go up

Petrol and diesel prices in Karnataka will cost more from April 1, as the budget for 2020-21 has proposed 3% increase in VAT on both.

To shore up revenue, he has also proposed a 6% jump in excise duty on Indian Made Liquor (IML) in all 18 slabs.


A child budget for the first time

For the first time, the state government has come up with a child budget

Listing out what it entails, Mr. Yediyurappa said that all policies and programmes for the development of children below the age of 18 years are consolidated and presented in the budget. "As many as 279 programmes involving Rs. 36340 crore are proposed in the budget for the 2020-2021 which consists of Rs. 15.28 % of the total volume of the budget. He said that this budget highlights the commitment of our government towards all round development of children in the state.

Under this, seven new vala mandiras will be established in collaboration with the central government.


Women safety portal

The chief minister also said that a woman safety portal will be launched to ensure that all the programmes of the Department of Women and Child Development are delivered in a transparent manner.

In a significant move, the state government has decided to conduct a baseline survey of transgenders throughout the state.

Chief Minister B. S. Yediyurappa said that this survey would be conducted by the Karnataka State Women Development corporation at the cost of Rs. 70 lakh in the 2020-2021 year. He said that the move would help in implementation of the Karnataka State Transgender Policy which came into force in 2017


Social welfare

In the social welfare sector, the budget proposes to provide a grant of Rs.26,930 crore under SCSP/TSP for the welfare of the community of Scheduled Castes and Scheduled Tribes. This is more than the amount required to be allocated as per rules.

Action to distribute a minimum of 25% of seats to the students of the same taluk in the residential schools run by Karnataka Residential Educational Institutions Society. Constitution of a supervisory committee under the leadership of Deputy Commissioner for these residential schools has also been proposed.

Encouraging talent development, the budget proposes to provide vehicle  driving training to unemployed youth (male/female) of Scheduled Castes and Scheduled Tribes through Road Transport Corporations, Skill development training along with various para-medical certificate courses and providing loan facility to purchase small goods transport vehicles.

While Rs 60 lakh has been allocated for giving cash prize of Rs.1 lakh to the students belonging to Scheduled Castes and Scheduled Tribes who stand first at the district level in the SSLC examinations in commemoration of Jadaga and Bala, who became martyrs in Halagali Bedars’ mutiny, a grant  of Rs.2 crore has been set aside for the documentation of traditional tribal medical systems and practices and the establishment of processing units of selected medicines in Shivamogga and Mysuru districts.

A grant of Rs.12.50 crore for the establishment of “Charma Shilpa”, mechanized production units by 250 leather artisans with a subsidy of Rs.5 lakh at a unit cost of Rs.10 lakh through Dr. Babu Jagajivan Ram Leather Industries Development Corporation Limited has also been proposed.

A grant of Rs.78 crore for the comprehensive development of nomadic, semi nomadic, marginalized and highly marginalized communities; a grant of Rs.125 crore to various Backward Classes Development Corporations and financial assistance of Rs.2.50 crore for the purchase of bikes to 1000 young men who deliver e-commerce products at Rs. 25,000 each, through D. Devraj Urs Backward Classes Development Corporation has been proposed.


Two Saturdays in a month will be observed as bagless days

Students from Karnataka have something to cheer as Mr. Yediyurappa announced that two Saturdays in a month will be observed as bagless days.

In addition to this, he also announced that under the legislators area development programme, three government schools will be adopted and developed by legislators in their constituencies. Meanwhile, English medium sections will be opened at 400 Urdu medium schools from the coming academic year

In the medical education field, he announced that a centralised placement cell will be set up at the Rajiv Gandhi University of health sciences for the placement of doctors , nurses , paramedics and pharmacy students  who graduatie from the state. In addition to this, stiimulation labs will come up at a cost of Rs 3 crore each and molecular biology labs at all government medical colleges in collaboration with RGUHS.


Proposals in the health sector

Telemedicine services in primary health centres, a comprehensive plan to detect congenital deafness among children below six years, free peritoneal dialysis services for BPL card holders in five districts, upgradation of emergency medical treatment centres in five hospitals including K C General hospital and Cath labs  in two city government hospitals under private partnership - these are some of the budget proposals that the State plans to implement in 2020.

Taking forward the Niti ayog”s proposal to privatise district hospitals, the Government has proposed to upgrade and maintain Intensive Care Units in all government hospitals in collaboration with private hospitals. This will be taken up on a pilot basis in two districts initially.

Mr. Yediyurappa said the focus will be on upgradation of neonatal ICUs in 17 hospitals in a phased manner.

Based on the model of Regional Advanced Paediatric Care Centre  in Mangaluru, similar centres will be set up in other hospitals too. This too will be under public-private-partnership.

Simulation laboratories and molecular biology laboratories at a cost of Rs 30 lakh each will be established in all government medical colleges in collaboration with RGUHS.

While continuing the previous year”s programmes of dialysis units in all taluk hospitals, the budget also proposes to set up a 20 bed Ayush Hospital in Haveri district.


Allocation for peripheral ring road, lakes

In an effort to decongest traffic in Bengaluru, Mr. Yediyurappa has announced Rs 14,500 crore towards developing the peripheral ring road in the city.

He also announced Rs. 100 crore towards the development of lakes in Bengaluru. He pointed out that Rs. 317 crore has already been earmarked previously for towards lake work.


500 core set aside for Mahadayi works

The Karnataka Government has set aside Rs. 500 crore for works related to Mahadayi irrigation.

Last week, the Central Government issued a notification on sharing the waters of the inter-state Mahadayi river among Goa, Karnataka and Maharashtra. It sought to implement the Mahadayi water disputes tribunal's August 2018 judgement which allocated 13.42 tmcft of water from the river to Karnataka. 

The budget also set aside Rs. 1500 crore for the Yettinahole project, Rs. 20 crore for balancing reservoir for Tungabhadra and Rs. 5000 crore for various lift irrigation projects.

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