Karnataka Budget focuses on urban development
Bangalore, Mar 5 (PTI): Karnataka Chief Minister B S Yeddyurappa on Friday presented the State Budget for 2010-11 that proposed a Rs 600 crore urban infrastructure development programme, while increasing taxes on tobacco as also slapping a toll of Rs 500 on heavy goods vehicles entering the state to raise revenues.
Yeddyurappa, who also holds the finance portfolio, announced reducing VAT on some commodities, including, masala powder vermecilli and schools bags, from 12.5 per cent to five per cent, the state would end the 2010-11 fiscal with a revenue surplus of Rs 51.42 crore.
The Rs 600 crore allocated to the urban development programme "Mukyamanthri Nagrothana Yojane" will be spent on developing seven city corporations, 44 municipal councils, 94 town municipal councils and 68 town panchayats.
On tobacco products value added tax was raised by 2.5 per cent while an upward revision ranging from 1 to 2 per cent was announced on the motor vehicles tax.
The life time tax on two wheelers with selling price of up to Rs 50,000 was raised from eight per cent to ten per cent and vehicles with selling price from Rs 50,000 to Rs one lakh from 10 per cent to 12 per cent.
Additional resources of Rs 249 crore is expected from the changes made in the motor vehicles taxes, he said.
The budget also proposed a toll of Rs 500 on every trip made by vehicles of more than 16 tonne weight in transporting materials, including mineral ores.
Yeddyurappa sought a vote on account for four months till July 31.
As per the Revised Estimates (RE) for 2009-10, Yeddyurappa said, the total revenue receipts are expected to be Rs 55,381 crore against Rs 61,070 crore in the budget estimates.
The RE of total government expenditure was expected to be Rs 60,051 crore against Rs 62,414 crore estimated in the budget.
The final deficit after taking net of public account is likely to be Rs 44.80 crore, while it was estimated to be Rs 43.08 crore in 2009-10 budget.
On the 2010-11 budget estimates, he said total receipts are estimated to be Rs 68,564 crore, consisting of Rs 53,639 crore of revenue receipts and Rs 2,903 crore non-debt capital receipts.
The total expenditure in 2010-11 is estimated to be Rs 70,063 crore consisting of Rs 53,138 crore of revenue expenditure and Rs 16,925 crore of capital expenditure.
The government expects to collect Rs 36,228 crore of tax revenue and Rs 2,820 crore of non-tax revenue. The total central transfers, including taxes and grants, would be Rs 14,591 crore, he said.
The revenue surplus is estimated to be Rs 500.49 crore, while the fiscal deficit is estimated to be Rs 9,708.46 crore, which is 0.15 per cent and 2.96 per cent of the GSDP respectively.
This is in accordance with the stipulations made in the Karnataka Fiscal Responsibility Act 2002 for the current year, he said.
Karnataka's financial position more sound than other states: Yeddyurappa
The financial position of Karnataka is more sound compared to other states, Chief Minister B S Yeddyurappa said in the Assembly on Friday.
Presenting the third consecutive budget of the BJP Government, and his fifth since 2006, Yeddyurpapa said the state's own tax revenue was more than 10 per cent of the Gross State Domestic Product (GSDP), which is the highest in the entire country. The average of all other states was below six per cent.
Starting from the year 2004-05 upto to the year 2007-08, Karnataka has maintained its fiscal deficit within the limit of three per cent of the GSDP every year, as stipulated in the Fiscal Responsibility Act, he said.
On Centre's advice, this limit was increased to 3.5 per cent in 2008-09 and further to four per cent in 2009-10, he said adding that in both the years, the state managed fiscal deficit within this limit.
It is estimated that the fiscal deficit, which was 3.23 per cent of GSDP at Rs 8,732 crore in 2008-09, will be 3.77 per cent at Rs 11,266 crore in 2009-10, Yeddyurappa who holds finance department said.
The state has been able to maintain a revenue surplus by restricting revenue expenditure within the limits of revenue receipts every year, he said.
Karnataka to launch new housing project "namma mane"
Aimed at solving housing problem of middle class people in city and small towns, Karnataka Government on Friday announced a new programme ''namma mane'' (our house) for providing affordable houses to them.
A sum of Rs 920 crore will be allocated for providing housing facility in rural and urban areas during 2010-11, Chief Minister B S Yeddyurappa said in his budget proposals.
During 2010-11, the government will build 50,000 houses for houseless families in urban areas under the Vajpayee Housing Scheme with each unit costing Rs 1.25 lakh, he said.
It has been decided to formulate a modified rural housing scheme by increasing the unit cost from Rs 40,000 to Rs 60,000 and the beneficiaries' contribution of Rs 10,000 will be facilitated by arranging concessional loans from banks, he said.
It is proposed to construct 1.50 lakh houses during this year under the modified scheme, Yeddyurappa said, adding a sum of Rs 75 crore will be allocated for providing free sites to landless families in rural areas.
He announced that those who have availed loans under Ashraya housing scheme will get interest waiver, provided instalments due as on March 31, 2010 are paid by this December end.
During 2008-09 and 2009-10, about 3.5 lakh houses have been constructed under Indira Awas, Ashrya and Ambedkar Yojana schemes in rural areas.
Cars and two wheelers to cost more in Karnataka
Cars and two-wheelers will cost more in Karnataka from April 1 as the budget for the coming financial year proposes to increase the motor vehicle taxes by one to two percent across the board.
"With noticeable increase in motor vehicle sales during the later half of this fiscal (2009-10) resulting in higher collection in motor vehicle taxes, the life time tax on various types of vehicles will be increased by one-two percent to collect Rs.2,200 crore during the next fiscal (FY 2011)," state chief minister B.S. Yeddyurappa said Friday.
Presenting the budget proposals, Yeddyurappa told the assembly that the life time tax on motor cycles and other two wheelers will be increased to 10 percent from eight percent for vehicles selling below Rs.50,000 and to 12 percent from 10 percent on those vehicles selling between Rs.50,000 and Rs.100,000.
"Similarly, life time tax on motor cars and jeeps will be increased to 13 percent from 12 percent on vehicles priced less than 500,000, to 14 percent from 13 percent on vehicles priced between Rs.500,000 and Rs.1 million, and 17 percent on vehicles selling between Rs.1 million and Rs.2 million instead of 16 percent this fiscal," Yeddyurappa, who also holds the finance portfolio, said.
On luxury cars selling above Rs.2 million, the life time tax will be 18 percent instead of 16 percent currently.The budget also proposes to levy life time tax of Rs.20,000 on new light goods vehicles of 3,000-5,500 kg instead of quarterly tax of Rs.1,200. Such vehicles, which are already in use, the life time tax will be an average of Rs.12,000 on the basis of the year of manufacture.
Yeddyurappa also modified quarterly taxes on omni buses with all-India permit to Rs.2,750 from Rs.2,500 and on stage carriages with special permit to Rs.1,000 from Rs.700.
Taxes on 1,000 kg construction vehicles such as mobile cranes, tower wagon, tipper, fork lift, air compressor and generator carrying vehicles will be levied a life time tax assessed at 10 percent of the selling price of the vehicle weighing 1,000 kg instead of Rs.200 quarterly.
"Additional resources of Rs.249 crore is expected from the revised or modified motor vehicle taxes in fiscal 2010-11," Yeddyurappa told the law makers.