Karnataka Budget - 'State facing worst financial crisis', says CM Yediyurappa


Daijiworld Media Network - Bengaluru (SHP)

Bengaluru, Mar 5: Chief minister (CM) B S Yediyurappa presented the state budget for the fiscal year 2020-21 on Thursday, March 5. Yediyurappa was presenting the Budget for the seventh time and as a chief minister for the fifth time. He said that the state was facing its 'worst financial crisis'. 

Addressing the assembly, the CM had called the budget to be people-friendly, citizen-friendly and business-friendly. One of the focal points of the Budget was to promote the welfare of the farmers and the fishermen community.

Commenting on the financial structure of the Budget, Yediyurappa detailed the constraints because of the financial crunch in the state. In his report, the CM said, "The State's share in central taxes has come down in 2019-20 as per the revised budget estimates of the Central Government. Due to this reason, there is a reduction of Rs 8,887 crore to Karnataka, causing a drop in the state's revenue resources."

"The GST compensation of Rs 3,000 crore will also be reduced as collections from the GST compensation cess is not as expected," he added.

The CM stated that the state was indeed going through the 'worst financial crisis' and that the 2019-20 budget targets were difficult to attain. The chief minister in his budget speech hit out at the Centre even though he belongs to the BJP.

“The 15th Finance Commission has recommended allocation of 3.64% to Karnataka. This is lesser than the 4.71% which we had got before,” he asserted.

Unlike earlier format, the CM followed a new format for the state budget report. Before, the budget speech was department wise, however, for the 2020-21 budget, Yediyurappa divided the budget into six sectors, concentrating on economic growth and comfortable living.

The chief minister began with one of the prominent points of the budget, compensation to farmer. Around 6.45 lac farmers are to be provided relief who were affected by the 2019 floods.

Kisan card which was a subsidy given to the farmers which will now also be available to fishermen. The fishermen community will be eligible for the same benefits as the farmers. This would involve government loans at low interest.

Funds worth Rs 200 crore are going to be directed towards the promotion of education on organic farming in the agriculture sector. The CM also announced Rs 500 crore for the drinking water Mahadayi project and Kalasa-Banduri Nala.

For the upliftment of the SC/ST communities, the state budget has proposed funds worth Rs 26,930 crore. Shifting the focus to the educational sector, Yediyurappa announced Rs 60 crore to IISc for researching Artificial Intelligence and Rs 5 crore to VTU for inducting new course as per industry requirements.

The Budget also focused on the wholesome development of the state capital, Bengaluru. Over Rs 14,500 crore is announced to decongest traffic in the city's outer ring road of the IT corridors. An amount of Rs 100 crore was allocated for the lake development in the city. BS Yediyurappa also announced Rs 500 crore for the work on suburban rail service in the city, along with Rs 100 crore for the Bengaluru Metropolitan Transport Corporation (BMTC) to buy electric buses.

A whopping Rs 500 crore has been announced by the CM for a film city in Bengaluru which will be set up with private partnership and a staggering Rs 400 crore was declared for the construction of 25-floor twin towers for the functioning of all government departments.

Looking at an expensive angle of the State budget, tax prices on IML and consumable fuels - petrol and Diesel witnessed a hike. While the tax on IML is to be increased by 6 per cent, the VAT on both fuels is proposed to be hiked by 3 per cent.

The budget proposed increase to 35 per cent from 32 per cent on petrol and to 24 per cent from 21 per cent on diesel.

To generate employment, the CM announced plans for setting-up two textile parks in Shiggaon in Haveri district and another at Karkala in Udupi district. The proposal is likely to create employment for approximately 3,000 people.

Concluding his speech, the CM maintained that the budget is prepared with intent to build an affluent state and the cooperation and approval of the assembly would help in the implementation of the programmes.

 

Live updates:

12.58 pm - BSY announces new textile parks to be set up at Shiggaon in Haveri district and at Karkala in Udupi district. The textile park likely to generate employment for up to 3000 people.

12.45 pm - BSY announces subsidy for auto driver children education. Every auto driver family to get Rs 2,000 per year for children education

12.40 pm - Grama One offices to be set up in all villages to offer government services including information on support price of vegetables, food grains for farmers - BSY

12.35 pm - BSY assigns Rs 66 crore for 100-feet Kempe Gowda statue at Bengaluru International Airport

12.30 pm - CM Yediyurappa allocates Rs 100 crore on Bengaluru Metropolitan Transport Corporation for the purchase of electric buses

12.25 pm - BSY sets aside Rs 500 crore to commence work on sub-urban rail service in Bengaluru

12.10 pm - Yediyurappa hikes tax on Indian Made Liquor (IML) by 6-per cent in Karnataka

12.00 pm - CM Yediyurappa allocates Rs 14,500 crore for the peripheral ring road to decongest traffic in the IT corridors. BSY also allocated Rs 20 crore for central government-run technology organisations-- HAL and ISRO.

11.55 am - In a bid to overcomebudget constraints, CM BSY has increased the tax on fuel in Karnataka. With this, Petrol price is said to rise to Rs 1.60

11.50 am - Rs 5 crore allocated for Visvesvaraya Technological University to offer special course for students to make them meet industry standards - BSY

11.44 am - BSY allocates Rs 26,930 crore for the development of SC/ST and other backward communities board

11.40 am - BSY allocates Rs 1000 crore to develop 110 villages, which are now part of Bruhat Bengaluru Mahanagara Palike

11.37 am - BSY assigns Rs 500 crore for drinking water Mahaday project and Kalasa-Banduri Nala as well

11.34 am - BSY allocates Rs 25 crore for Vishwakarma development board and Rs 10 crore for Arya Vaishya development board

11.26 am - Rs 200 crore will be assigned to fund the agriculture sector to offer education on organic farming.

11.22 am - Kisan card will also be given to fishermen community: BSY

11.20 am - Central government has reduced Rs 8,833 crore in grants to Karnataka: BS Yediyurappa

11.15 am - Have offered compensation to 6.45 lakh farmers for flood: BS Yediyurrappa

11.13 am - Will grant relief money and also divert some funds to rebuild houses, roads, says Yediyurappa

11.10 am - Will give prominence to drought and flood affected victims in this budget - Yediyurappa

11.06 am - Opposition interupts B S Yediyurrappa for not distributing budget papers to the legilative members. BS Yediyurrappa assures the opposition to start distributingthe budget documents soon.

10.30 am - Karnataka CM Yediyurappa arrives at Vidhana Soudha to present the State Budget 2020-21


Earlier report

Bengaluru, Mar 5 (IANS): Karnataka Chief Minister B S Yediyurappa will present the budget for fiscal 2020-21 in the Assembly on Thursday, March 5.

Yediyurappa, who also holds the finance portfolio, will present the budget for fiscal 2020-21 on Thursday. It will be his 7th budget and fifth as Chief Minister.

Though Yediyurappa assumed office again on July 26, 2019, he was compelled to re-present the budget for fiscal 2019-20 after JD-S-Congress coalition government collapsed on July 23 as its Chief Minister H.D. Kumaraswamy lost the trust vote in the Assembly.

The budget could have some of the promises the ruling party made in its manifesto ahead of the 2018 Assembly elections.

"The thrust of the budget will be on agriculture, irrigation, infrastructure, energy, education, health and development of Bengaluru and other cities to accelerate uniform growth," said sources.

With the Central government notifying the Mahadayi inter-state water tribunal award on February 27 following the Supreme Court's directive on February 20, Yediyurappa will allot funds to resume the Kalasa-Banduri project to supply drinking water to the four-drought prone districts in the state's north-west region.

"As revenue collection is expected to fall short of the budget estimates for this fiscal (2019-20) due to economic slowdown and reduction in transfer of central funds to the state as part of its share from the Goods and Services Tax (GST) regime, Yediyurappa faces a daunting task in mobilising resources to fund his government's ambitious projects and schemes," said a political analyst.


 

 

 

 

  

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Comment on this article

  • Mahesh rao, Bangalore

    Wed, Mar 25 2020

    For so many years they enjoyed from public tax paying money now let them open their treasury and utilize for the public who are really need now huge funds to get out from this coronavirus.

    DisAgree Agree [3] Reply Report Abuse

  • Mangalurian, Mangaluru

    Fri, Mar 6 2020

    All the mega-projects have gone to Gujju-land.

    The Rs. 7,000 crore statue as a domestic tourism booster.

    The Central Railway University.

    The world's biggest Motera Stadium, costing officially 700 crores, but most likely five times that.

    Of course, the Rs 1.5 Lakh Crores Gujarat Bullet Train.

    Is the money spent out of the state coffers, or is it the Central Government's money?

    DisAgree [1] Agree [13] Reply Report Abuse

  • Sahil, Mangaluru

    Fri, Mar 6 2020

    allow our bank with gujjus ban to merge.

    DisAgree [1] Agree [8] Reply Report Abuse

  • James, Bendur

    Fri, Mar 6 2020

    State facing worst financial crisis whereas BJP/Cong/JDS ministers are spending lavishly on their children weddings. Have a look on HDK son engagement party, Sri Ralumu daughters wedding party.... is there any financial crisis???????

    DisAgree [1] Agree [28] Reply Report Abuse

  • moshu, mangaluru

    Fri, Mar 6 2020

    Jaisa PM waisa CM. When central govt has no clue what terrible recession our country is facing then what else we expect from state .

    DisAgree [4] Agree [25] Reply Report Abuse

  • Clifford, Mangalore

    Fri, Mar 6 2020

    Take back 30 crores given to MLA's to jump to BJP and use it to help poor people. BJP has made country bankrupt.

    DisAgree [5] Agree [24] Reply Report Abuse

  • Sam, Mangalore/ mississauga

    Thu, Mar 5 2020

    Eddi you empty the state treasury, and faku and daku will empty national treasury, when you all lose next election you and your illiterate gang will blame the new government.

    DisAgree [3] Agree [40] Reply Report Abuse

  • G Veer S, Nagpur

    Thu, Mar 5 2020

    Ab Modi Hai Tho Momkin Hai Desh Ka Diwala. This is Make-in-India Diwala. Yeddy, did you lie when you said there going to be huge foriegn investment after you went abroad to woe foriegn investors???.

    DisAgree [3] Agree [39] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Mar 5 2020

    Sitaraman & Yediyurappa compliment each other ...

    DisAgree [4] Agree [40] Reply Report Abuse

  • Eminef, Mangalore

    Thu, Mar 5 2020

    Nothing for coastal Karnataka. Do they know coastal region is part of Karnataka?
    BTW why are you presenting the budget in a briefcase. Your madam central finance said she wanted to get away from British tradition.

    DisAgree Agree [37] Reply Report Abuse

  • Santosh, Mangalore

    Thu, Mar 5 2020

    State in Financial Crisis? All wealth used to buy MLA's?

    DisAgree [2] Agree [64] Reply Report Abuse

  • Praveen, Mlore

    Thu, Mar 5 2020

    Tax Payers money enjoying by Govt Officials and Politicians......For common people Same "Ghanta"milega

    DisAgree [1] Agree [49] Reply Report Abuse

  • Praveen, Mlore

    Thu, Mar 5 2020

    Yes All the money used for Operation Kamala and flood of money to those 17 MLA's Constituency

    DisAgree [2] Agree [53] Reply Report Abuse

  • S Shetty, Tulunaad

    Thu, Mar 5 2020

    No Mention of Tulunaad or upliftment of Tulu Language, WHAT RUBBISH

    DisAgree [7] Agree [44] Reply Report Abuse

  • Cynthia, Kirem

    Thu, Mar 5 2020

    Vishu jobig apply malpugana apply apply no reply barpi muttta...? Dadanuvar... Kagaaji bokka pen pathond suru malpule...

    DisAgree [2] Agree [15] Reply Report Abuse

  • Gabriel Lewis, Brahmavar

    Thu, Mar 5 2020

    Karnataka has been deprived of 9,000 crores of central aid,
    But andh bhakths will say modi karaega tho soch samajhkar hee kiya hoga ...🤪

    DisAgree [4] Agree [53] Reply Report Abuse

  • JL, Mangaluru Smart City

    Thu, Mar 5 2020

    Since our economy in a mess, better to have smaller than Kadri Park!!!.

    DisAgree [3] Agree [25] Reply Report Abuse

  • Paul, mangalore

    Thu, Mar 5 2020

    Looks no funds for coastal area..
    Why increase Tax on liquor ....So sad ...Loool

    DisAgree [5] Agree [31] Reply Report Abuse

  • Cynthia, Kirem

    Thu, Mar 5 2020

    To increase the funds... Paul...mmm

    DisAgree [1] Agree [16] Reply Report Abuse

  • richard, shirva

    Fri, Mar 6 2020

    dont drink ..let us see how he collect tax

    DisAgree Agree [2] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Mar 5 2020

    We will drink Scotch ...

    DisAgree [5] Agree [42] Reply Report Abuse


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Title : Karnataka Budget - 'State facing worst financial crisis', says CM Yediyurappa


 
 
 
 

 
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