The coalition government’s second State Budget, presented by Chief Minister H.D. Kumaraswamy amid political uncertainty, is largely agro-centric with a slew of measures for drought-hit farmers, besides schemes for workers in the unorganised sector.
The budget made a whopping outlay of ₹46,853 crore for agriculture and allied sectors, nearly 20% of the total budget expenditure.
The Opposition BJP raised slogans and staged a walkout during the presentation, alleging that the coalition government had “no moral right” to present it and has lost the majority in the House due to the revolt within the Congress.
During the three-hour- long speech in the Legislative Assembly on Friday, Mr. Kumaraswamy, who also holds the Finance portfolio, set aside ₹12,650 crore in 2019-20 for crop loan waiver announced last year. The loan waiver would cover 40 lakh farmers.
To fund the waiver and other welfare schemes, citizens will need to pay more for liquor, with the Chief Minister proposing additional excise duty.
For freeing the rural economy from exploitation by moneylenders, he proposed a new ‘Gruhalakshmi Crop Loan Scheme’.
Under the scheme, small and marginal farming families can avail crop loans at 3% interest by pledging jewellery. Mr. Kumarawamy said he envisages “development of the entire State” and his budget is not aimed at seeking votes for the coming general elections.
The Chief Minister announced a slew of new schemes, including a hike in incentive for milk producers, from ₹5 to ₹6 per litre of milk; Raitha Kanaja scheme for providing minimum support price to 12 notified crops; the Karavali package for promoting paddy cultivation; establishment of a Debt Relief Commission on the Kerala model; increase in monthly allowances for pregnant women belonging to below poverty line families from ₹1000 to ₹2,000, and increase in honorarium for anganwadi workers and helpers by ₹500 and ₹250, respectively.
Other welfare schemes included supply of milk to anganwadi children for five days a week, distribution of mechanised two-wheeler vehicles (retrofitted) free of cost to 2,000 physically challenged people, and construction of hostels and kalyan mandirs for 30 Other Backward Classes communities.
The monthly risk allowances for police constables doubled (₹1,000 to ₹2,000). It envisages construction of houses as well as group insurance for auto drivers and taxi drivers, and Shramika Sourabha for welfare of construction workers.
He said the State’s gross domestic product will grow at the rate of 9.6% in 2018-19 against 10.4% during 2017-18. A negative growth of 4.8% in the farm sector was projected owing to prevailing drought in 156 taluks.
The budget, with a revenue surplus estimated at ₹257.96 crore, the total size of the budget was ₹2,34,153 crore against ₹2,18,488 crore in 2018-19, showing an increase of 7.17%.
