No fresh taxes in State Budget for 2021-22, focus on development, women


From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Mar 8: In the eighth budget of his political career and the third during the present term since the BJP government’s formation after the collapse of the Congress-JD(S) coalition government in 2019, Chief Minister B S Yediyurappa has spared the citizens scarred by the COVID 19 pandemic and the consequent economic slowdown of any fresh taxes even while continuing the focus on development besides coming out with a slew of measures to the women to mark the International Women’s Day celebration on Monday.

In his two-hour-long budget speech, the Chief Minister, who is also handing the Finance Department, said the budget has been, 'formulated in a most difficult situation' with economic activities coming to a standstill due to the spate of natural calamities such as floods, drought conditions in several parts of the state and COVID-19 pandemic.

"The Gross State Domestic Product (GSDP) has seen a downfall due to lockdown for controlling the Covid-19 pandemic during the year 2020-21. As per the initial estimations based on fixed prices, the GSDP has contracted by 2.6% in comparison with that of 2019-20," Yediyurappa said.

The State and Central tax collections are less than budgetary estimates that have led to a reduced share of taxes to states. As a result, the share of the State in Central taxes has come down to Rs 20,053 crore in the revised estimates from the budgetary estimates of Rs 28,591 crore in 2020-21. The situation has resulted in rising debts that will also wipe out any hopes of achieving the 14% growth target projection made last year, he said presenting a grim economic scenario.

"Revenue collection was adversely affected due to Covid-19 and the consequent lockdown that was imposed. Despite the unenviable situation, I have ensured that all the committed expenditure like Salary, Pension, Loan repayment etc. was provided for.  I have also provided funds for developmental activities,’’ he said pointing out that the State was expecting to spend at least 94% of the total budgeted expenditure during the current year, which itself is an achievement considering the constraints faced by the government.

However, the Opposition Congress leaders in the assembly protested by wearing black arm-bands during the budget presentation and after observing their protest for a few minutes, they boycotted the proceedings under the leadership of former chief minister Siddaramaiah. When the chief minister completed his 2-hour-long budget speech, Assembly Speaker Vishweshwara Hegde Kageri adjourned the session for the rest of the day.

This year’s budget size of Rs 2,46,207 crore has marginally exceeded the previous budget size of Rs 2,37,893 crore by Rs 8,314 crore registering a growth of 3.5% growth. He proposed allocation of Rs 52,529 crore for economic development programmes and allocated funds to the tune of Rs 7,795 crore for the comprehensive development of Bengaluru and also funds for the suburban rail project.

Fiscal Deficit

The fiscal deficit and the total liabilities of the state are estimated to shoot up sharply by the end of 2021-22. The fiscal deficit is pegged at Rs. 59,240 crore – 3.48% of GSDP for 2021-22, even as borrowings for the year has been pegged at Rs 71, 332 crore. With this, the total liability of the state at the end of 2021-22 is estimated to be Rs.4,57,899 crore – 26.9% of GSDP. The state government has announced that suitable amendments to the Karnataka Fiscal Responsibility Act, 2002, will be introduced in the current assembly session. The budget commits to limit the fiscal deficit at 4%, despite the union government relaxing it to 5%.

Though the state has had to revise the budget estimates for 2020-21, effectively contracting the budget to Rs. 2,29,925 crore from an earlier estimate of Rs. 2,33,134 crore, the budget estimates for 2021-22 is pegged at Rs. 2,46,207 crore that includes revenue expenditure of Rs. 1,87,405 crore, capital expenditure of Rs. 44,237 crore and debt repayment of Rs. 14,565 crore. In 2020-21, while the manufacturing and service sectors have recorded a contraction of 5.1% and 3.1% respectively, the agriculture sector has recorded “remarkable” growth of 6.4%, despite the pandemic and recent floods in North Karnataka.

The chief minister said the state had spent Rs 5,372 crore during the Covid-19 pandemic in the state and more than 63 lac people had benefitted from initiatives while over 9 crore RT-PCR tests had been conducted. Stating that the government is taking all measures to prevent a second wave, the CM said 19 district hospitals will get 25-bed ICUs each and 100 taluk hospitals will be upgraded with 6-bed ICUs each. Nearly 250 Primary health centres will be upgraded and converted into Model PHCs. Four Regional Food Safety labs will be set up at a cost of Rs 2 crore. An Antimicrobial Resistance unit at a cost of Rs 1 crore each. Regional cancer centres on lines of Kidwai, Jayadeva institutes.

Determined to reduce MMR to 70 from the current 92 and IMR to 10 from 23 in the state, the government will initiate all measures and to detect metabolic diseases in children, two labs in Ballari and Bengaluru will be set up at a cost of Rs 10 crore, the chief minister said.




Live Updates

14:10 pm - 'Karasmadhana scheme-2021' to be implemented to complete pre-GST legacy audit and clear tax arrears. The revenue collection target for Commercial Taxes is Rs 76,743 crore, stated Yediyurappa.

13:55 pm - Stamp duty for the first registration of apartments costing Rs 35 lac to 45 lac to be reduced to 3% from 5%. The target for the stamps and registration department has been set at Rs 12,665 crore. Meanwhile, the target for the excise department for 2021-22 is Rs 24,580 crore and for transport department is Rs 7,515 crore.

13:48 pm - Rs 2 crore announced for the development of facilities in the Government Flying Training School at Jakkuru.

13:46 pm - In a first, maps containing details of forest types and density in Karnataka state with 50-centimetre satellite resolution will be prepared, says CM. A property registration pilot project using blockchain will be implemented at a cost of Rs 1 crore, with the help of IIT Kanpur to prevent cheating and document tampering. Unified land management system to be developed, the CM announced.

13:44 pm - Integrated theme park to come up downstream of Kabini reservoir in Mysuru under PPP model at a cost of Rs 50 crore. Tourism department to implement projects worth Rs 500 crore. Weekend Tourism Circuits to be identified around Bengaluru, the CM said in his speech.

13:42 pm - Rs 1 crore will be allocated for staging the theatrical performance of writer SL Bhyrappa's 'Parva' through Rangayanas in the state.

13:41 pm - Rs 7,795 crore allocated for comprehensive development of Bengaluru. Rs 850 crore allocated for the suburban rail project. Doubling of Yeshwathpur-Channasandra and Byappanahalli-Hosuru lines to be completed by 2023. Koramangala Valley Rajakaluve Development and Maintenance project at Rs 169 crore, the CM said.

13:39 pm - Bengaluru Signature Business Park to come up next to Kempegowda International Airport Limited (KIAL). Upgradation works of 248 MLD capacity sewage treatment plant at KC Valley at a cost of Rs 450 crore, the CM announced.

13:37 pm - A multi-specialty hospital in North Bengaluru to be developed to provide services to poor and migrant workers. A sub-centre of Jayadeva Institute of Cardiology at KC General Hospital will be set up at a cost of Rs 20 crore, announced the CM.

13:35 pm - The state government to float 'Swiss Challenge' tender to take up peripheral ring road works around Bengaluru.

13:33 pm - The CM announced a 105-acre tree park at Byappanahalli, and 'Experience Bengaluru Centre' at Malleshwaram.

13:31 pm - KREDL (Karnataka Renewable Energy Development Limited) to establish a 500 MW solar park on 1,551 acres of land at Firozabad, Kalaburagi through private developers. An advanced biotech innovation centre for Aquamarine to come up at Mangaluru, costing Rs 6 crore to develop biotech industries and innovative start-ups. State to establish Venture Capital Fund of Rs 100 crore and the government to contribute a share of Rs 25 crore. State Mineral Policy 2021-26 to be formulated soon. Research Park for quantum computing at a cost of Rs 10 crore and an international science centre to be established at Rs 10 crore, the CM announced.

13:28 pm - Bulk Drug Park at Kadechur industrial area, Yadgir at a cost of Rs 1,478 crore with assistance from the centre. Chief Minister Mega Integrated Industrial Townships to come at Bengaluru-Mumbai and Bengaluru-Chennai industrial corridor across a minimum of 500-acre land. Investment of around Rs 10,000 crore expected to the townships in three years. Further, an industrial township at Peenya at Rs 100 crore. New slab for property tax for industries in urban areas, the CM said in his budget speech.

13:26 pm - All mega projects costing above Rs 100 crore will be mandatorily evaluated. Drinking water and underground drainage projects by KUWSDB will be set up at the cost of Rs 900 crore. Water testing labs in 26 AMRUT (Atal Mission for Rejuvenation and Urban Transformation) cities at a cost of Rs 17 crore. To dispose of non-biodegradable waste, a material recovery centre of 10-tonne capacity at five city corporations will be constructed at the cost of Rs 11 crore, the CM announced.

13:24 pm - Rs 463 crore provided as a grant for the Dharwad-Kittur-Belagavi line. 50% of the total project cost and the complete cost of land acquisition will be covered through the fund approved. A joint venture company of state government and Airport Authority of India to develop and commission government-owned airports. A new aerospace and defence policy will be announced soon, said BSY.

13:20 pm - Karnataka government's Jaladhare scheme to be integrated with Centre's Jala Jeevan Mission. Bulk water supply will be provided to villages from permanent water sources at Rs 25,740 crore, announced CM.

13:15 pm - Around 150 government ITIs (Industrial Training Institutes) to be upgraded at a cost of Rs 4,636 crore to train human resources. Project in collaboration with TATA Technologies Limited. TATA to bear 88% of the cost and state 12% equal to Rs 657 crore. Various engineering divisions of RDPR (Rural Development and Panchayat Raj) to be merged into one to reduce administrative expenditure. Rs 1,500 crore grant will be provided for Kalyana Karnataka Development Board, said the CM.

13:13 pm - Rs 1,500 crore allocated for the welfare of minority communities. Rs 200 crore for renovation/repair of churches, assistance to orphanages, and others, said the CM. Rs 20 crore for infrastructure facilities at Shravanabelagola. Government to set up 25 mobile check-up centres for construction workers. Construction Workers Welfare Board to construct four temporary residential facilities in Bengaluru Urban and rural districts, one each in Mysuru, Shivamogga, Hubballi, Kalaburagi, Ballari, Hassan and others, announced the CM.

13:10 pm - Fund allocation for SCSP/TSP (Scheduled Castes Sub Plan/Tribal Sub Plan) down to Rs 26,005 crore due to the increase in the committed expenditure. Committed expenditure will grow from Rs 1.29 lac crore in 2020-21 to Rs 1.42 lac crore. 75% subsidy for sucking and jetting machines. Rs 2 crore grant for the purpose. Kolhapuri footwear cluster at Nippani, Belagavi district. A total grant of Rs 500 crore for the development of various corporations of backward communities.

13:07 pm - Rs 2 crore allocated for Tele-ICU facilities. Regional cancer centres along the lines of Kidwai Hospital at Mysuru and Shivamogga at a cost of Rs 100 crore, Yediyurappa announced.

13:03 pm - A 25-bed and 6-bed capacities ICUs will be established in 19 districts and 100 taluk hospitals at a cost of Rs 60 crore in the next two years. The state government will set up an anti-microbial resistance unit at the cost of Rs 1 crore. Laboratories at the cost of Rs 10 crore will also be set up to detect hereditary metabolic diseases at Bengaluru and Ballari, to reduce the infant mortality rate. Ayurvedic College in Shivamogga to be upgraded to AYUSH university.

13:00 pm - Rs 100 crore approved for the development of 50 schools under the Kendriya Vidyalaya model. Rs 100 crore for constructing toilets in schools and colleges. Further, under the new 'Samarthya-Sarathya' programme, Rs 5 crore allocated to train 5 lac students for competitive exams, the CM announced.

12:55 pm - Funds for the Kalasa-Banduri Nala project will be allotted in the budget and the clearances to implement them will be obtained. Rs 5,600 crore will be allocated towards Krishna Bhagya Jala Nigama for irrigational works. Land acquisition hurdles in the Yettinahole Project will be cleared said Yediyurappa.

12:53 pm - (Agricultural Produce Market Committee) APMCs to be computerized at a cost of Rs 198 crore. Government to set up a well-equipped flower market at a cost of Rs 50 crore at Byappanahalli and a dry chilli market under the PPP model by Ballari APMC, said the CM.

12:52 pm - Karnataka Government will construct Yathri Nivas at Ayodhya at a cost of Rs. 10 crores. The Uttar Pradesh government will provide 10 acres of land for the same.

12:50 pm - One gaushala will be constructed in each district. To encourage ayurvedic medicine in veterinary science, a new research institute at a cost of Rs 2 crore will be set up at veterinary college, Shivamogga. Rs 30 crore allocated to set up units to sell fish and for Matysa Darshinis, announced the CM.

12:45 pm - To promote organic farming, Rs 500 crore to be allocated for benefit of food startups. A new food park to come up in Vijayapura. Karnataka government to increase reservation for farmers children from 40% to 50% in agricultural university. For small food processing units, subsidies will be raised to 50%. Horticulture Technology Park to come up soon at Koppal district.

12:42 pm- The CM announced a fund of Rs 3,000 crore for the revival of lakes and ponds across Karnataka.

12:40 pm - Excellence centre to help women who are subject to harassment and abuse. NIMHANS and NLSIU to be roped in announced the CM.

12:38 pm - The budget for women and children will be implemented under Panchayat Raj. The safe city project will be expedited. Over 7,500 CCTV cameras in Bengaluru will be installed and a tech-based e-Beat system will be in place during night hours to ensure women's safety.

12:36 pm - The CM announced setting up of 60,000 micro-enterprises under RDPR to generate employment to 60,000 women. Branding and online assistance for such enterprises.

12:33 pm - CM Yediyurappa announced that on account of Women's Day the government will upgrade Anganwadis to Shishu Palana Kendra and establish such centres in all district offices.

12:30 pm - Rs 5,372 crores has been spent during the Covid-19 pandemic in the state. More than 63 lac people benefitted from state government initiatives. Over nine crore RT-PCR tests have been conducted, said the CM.

12:25 pm - Special women bus pass Vanitha Sangathi to be provided with rebate along with special loan up to Rs 2 crore with 4 per cent interest rate to women entrepreneurs, announced the CM.

12:16 pm - No taxes including Karnataka State Tax on petrol and diesel will be increased. The budget has been drafted in such a manner that it does not increase the financial burden on the common man.

12:10 pm - Opposition leader Siddaramaiah staged a walkout as chief minister Yediyurappa presented the budget 2021-2022


Earlier report

Daijiworld Media Network - Bengaluru

Bengaluru, Mar 8: Karnataka chief minister B S Yediyurappa will present the budget for fiscal 2021-22 in the Assembly on Monday March 8. It will be his 8th budget and fifth as chief minister.

The CM's budget speech 'Karnataka Vikasa Patra 2021', will begin at 12.05 pm and the budget size is expected to be slightly larger than the Rs 2.35 lakh crore presented in the previous fiscal.

The state budget for the ensuing fiscal will give priority to development works and women's welfare. This is my assurance to all women in the state," Yediyurappa had said last month.

The year-long pandemic, which invaded the southern state on March 8, 2020, stalled most of the development works though allocations were made in the budget for fiscal 2020-21 but could not be spent due to Covid-induced lockdown and restrictions to prevent the virus spread.

With more than Rs 30,000 crore revenue shortage, Karnataka is staring at downsizing its outlay by at least 10 per cent this fiscal 2021-22, a senior official of the Finance department had told back in January.

However, the chief minister had said that there will be no dearth of funds or resources to fight the Covid-19 pandemic while expressing hope that the requirement could be less in the new financial year.






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Comment on this article

  • Avinash, Mangalore

    Tue, Mar 09 2021

    Focussing on development is ok but why to focus on women...?

    DisAgree Agree Reply Report Abuse

  • Rajesh Shetty, Udupi

    Tue, Mar 09 2021

    this is only show ups, all budgeted money go for ministers pocket.

    DisAgree Agree [2] Reply Report Abuse

  • kavin, udupi

    Tue, Mar 09 2021

    Every item price is increased what else there to increase tax? once item price is increased then automatically GST will increase. Heading is fooling people that no fresh taxes...

    DisAgree [1] Agree [3] Reply Report Abuse

  • Althaf, Udupi/Kaup

    Tue, Mar 09 2021

    If all the govts properly allocated the full funds what they promise in budget then no one would be poor in any minority community. Budget is only a time pass. Reality is only 1% of the funds will be utilized.

    DisAgree [2] Agree [2] Reply Report Abuse

  • Althaf, Udupi/Kaup

    Tue, Mar 09 2021

    Excuse me !!! Development & BJP is not matching together.

    DisAgree [3] Agree [4] Reply Report Abuse

  • rahulraj, kadri

    Tue, Mar 09 2021

    Oh my God..What a difference in funds allocated for development between the capital city and other cities. This is really bad. Things should change.

    DisAgree [3] Agree [5] Reply Report Abuse

  • Greeshma, Mangalore

    Mon, Mar 08 2021

    Funds for minorities...hahaha

    DisAgree [5] Agree [6] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Mar 08 2021

    Thank you for sparing Petrol & Alcohol ...

    DisAgree [6] Agree [14] Reply Report Abuse

  • Harold Dcunha, Mangalore, Mangalore, India.

    Mon, Mar 08 2021

    Reducing the stamp duty on the first registration of apartments valued between Rs 35-45 lakh from 5%to 3%. is very positive. Also not increasing any taxes on Petrol and diesel is fine; it would have been better, if the taxes on petrol, diesel is reduced.

    DisAgree [3] Agree [23] Reply Report Abuse

  • Sahil, Mangaluru

    Mon, Mar 08 2021

    Please give my 15lakhs sir I will even ready to go for auto?. No need big promise sir...

    DisAgree [23] Agree [13] Reply Report Abuse

  • Sangram Sangam, Kundapur

    Mon, Mar 08 2021

    Dont worry

    DisAgree [3] Agree [11] Reply Report Abuse

  • kiran, bidar

    Mon, Mar 08 2021

    A POLITICIAN visited a village and asked what their needs were. "we have two basic needs sir," replied the villager. "firstly, we have hospital, but there's no doctor." on hearing this, politician whipped out his cellphone, and after speaking for a while on cellphone he reassured the village leader that the doctor would be there the next day . He then asked about the second problem. "Secondly sir,there is no cellphone coverage anywhere in this village."

    DisAgree [1] Agree [40] Reply Report Abuse

  • N.M, Mangalore

    Mon, Mar 08 2021

    No one has received any money so far.

    DisAgree [13] Agree [13] Reply Report Abuse

  • Nice, Mangalore

    Mon, Mar 08 2021

    Every Community needs peace

    DisAgree [4] Agree [14] Reply Report Abuse

  • Deshbhakt, Mangalore

    Mon, Mar 08 2021

    This is just one GRANT announced in the budget for year 21-22 ?

    DisAgree [9] Agree [6] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Mon, Mar 08 2021

    First Develop all the Backward Communities ...

    DisAgree [8] Agree [18] Reply Report Abuse

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Title: No fresh taxes in State Budget for 2021-22, focus on development, women

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