On 17th February 2023, during the Karnataka State Assembly, the Karnataka Chief Minister(CM) Basavaraj Bommai presented a revenue surplus budget with no tax hike. For the 1st time, the budget outlay of Karnataka has crossed Rs 3 lakh crore mark and is pegged at Rs 3,09,182 crore, up from Rs 2,65,720 crore in 2022-2023.
- The budget for the first time, post-pandemic, was a revenue surplus one, with receipts expected to be more than expenditure by Rs 402 crore.
- To further boost capital expenditure, the budget has enhanced outlay by 30.4% for capex to Rs 61,234 crore in FY24.
Key Points:
i.The fiscal deficit has been expected to be at Rs 60,581 crore which is 2.60% of the Gross State Domestic Product (GSDP). The total liabilities at the end of 2023-2024 are estimated at Rs 5,64,896 crore, which is at 24.2% of GSDP.
ii.With borrowings of Rs 77,750 crore, the liabilities at the end of 2023-24 are pegged at Rs 5,64,896 lakh crore, or 24.20% of GSDP, thereby satisfying all parameters of the Karnataka Fiscal Responsibility Act, 2002.
Development project in Bengaluru:
i.Rs 9,698 crore has been allocated to Bengaluru for the comprehensive development of roads. This is aimed to solve traffic congestion and flooding.
- With this grant, a 5-kilometre of road will be developed at a cost of Rs 350 crore from Tin Factory to Medahalli, an integrated flyover from Yeshwantpur Railway Station to Mathikere, etc. An additional 120 km of roads will be white-topped at a cost of Rs 1,000 crore.
ii.The Karnataka government is set to provide Rs 1,000 crore to implement Sub-Urban Railway Project in Bengaluru. Rs 1,813 crore have been allocated for 195 km of drainage and culverts. The government has allocated Rs 150 crore to improve 75 junctions with the highest traffic congestion.
Highlights of the budget:
i.The 2023-24 budget includes schemes and provisions for farmers including a hiking limit on interest-free loans for farmers to Rs 5 lakh, from Rs 3 lakh.
ii.The budget has also allocated Rs 10 lakh investment in each Farmer Produce Organisation(FPO) and the development of 1000 small tanks.
iii.The budget includes a proposal to simplify professional tax and to raise tax exemption limit from to Rs 25000 per month from Rs 15000 for salaried employees.
New Schemes:
i.The government of Karnataka has introduced a new CM Vidya Shakti Scheme for students in order to enable continued higher education. Under this scheme, the students will be offered free education in Government Pre University and Degree Colleges.
ii.The scheme will benefit around 8 lakh students.
iii.He also announced an additional subsidy of Rs 10,000 each next year under a new scheme, ‘Bhoo Siri’, for Kisan Credit Card holders.
Key Points:
i.The budget has allocated Rs 39031 crore for the agriculture and allied activities sector and Rs 80318 crore is allocated to the welfare and inclusive growth sector.
ii.Rs 61488 crore is allocated for measures for economic growth; Rs 3458 core was allocated to culture, heritage and natural resources conservation and Rs 68585 crore is allocated to administrative reforms and public service delivery.
About Karnataka:
Chief Minister– Basavaraj Somappa Bommai
Governor– Thawar Chand Gehlot
Wildlife Sanctuary– Brahmagiri Wildlife Sanctuary; Cauvery Wildlife Sanctuaries
