Updated
From Our Special Correspondent
Daijiworld Media Network
Bengaluru, Mar 4: In a please-all budget covering all sections of society and regions without any additional tax burden, Chief Minister Basavaraj Bommai, presented his government’s maiden budget for the year 2022-23 in the Karnataka Assembly on Friday and describing it as ‘’budget of hope’’ with plenty of hopes that it will help the ruling BJP to romp home with a thumping majority in the Assembly polls due by May 2023.
Bommai, who also holds the Finance portfolio, said, “The budget is the reflection of the aspirations of people-centric development. It is our commitment to bring positive changes effectively in the life of citizens. This budget is an inspiration to provide excellent services to public through proper utilization of modern technology,’’ and asserted: “This is a budget formulated by a common man for common people.’’
“The economy is on the road to recovery. In these circumstances, I am not willing to put extra burden of additional taxes on common man. Tax collection targets will be achieved by ensuring all the tax departments to perform better,” he said.
Compared to the budget estimates of Rs 2,43,734 crore, a revised estimate of Rs 2,57,042 crore is expected for the current year. The State’s revenue mobilization efforts stands at Rs 1,89,579 crore, including Own tax revenue collection as well as GST Compensation of Rs.1,18,657 crore. As per the revised estimates, the yotal expenditure is Rs 2,53,165 crore, which marks an increase of 7.7% over 2020-21.
The Total Receipts are estimated to be Rs 2,61,977 crore during 2022-23. This includes Revenue Receipts of Rs 1,89,888 crore and Capital Receipts of Rs 72,089 crore and Borrowings of Rs72,000 crore. The Total Expenditure is estimated to be Rs 2,65,720 crore, including Revenue Expenditure of Rs 2,04,587 crore, Capital Expenditure of Rs 46,955 crore and debt repayment of Rs 14,179 crore.
Karnataka’s Revenue Deficit is estimated to be Rs14,699 crore. Fiscal Deficit is expected to be Rs 61,564 crore, which is 3.26% of GSDP. The total liabilities at the end of 2022-23 is estimated to be Rs 5,18,366 crore, which is 27.49% of the GSDP. The total Own Tax Revenue of the State including the GST compensation, for 2022-23 is estimated to be Rs1,31,883 crore and Rs 10,941 crore is expected to be collected from Non-Tax Revenues.
Describing the 2022-23 Budget as "one of hope" post-pandemic, Bommai said there is now better augmentation of resources. The economy has revived, with service sector growing by 9.2%, industrial sector by 7.4% and agriculture sector by 2.2%. GSDP growth is expected to grow by 9.5% compared to previous year.
Rs 33,700 cr for agri sector, Rs 1,000 cr for Mekedatu
With the principal opposition Congress party going on warpath over the implementation of the Mekedatu balancing reservoir project, the Chief Minister has proposed an allocation of Rs 33,700 crore for the agriculture and allied sectors during 2022-23 and allocated Rs 1,000 crore for the Mekedatu project, which will be implemented upon getting the necessary Central clearances.
In addition to a firm commitment on implementing Mekedatu project, Bommai has allocated Rs 3,000 crore for taking up the second phase gravity feeder works of the Yettinahole project, whose first phase is nearing completion. Further, Rs 500 crore has been set apart for the first phase of Paschmimavahini prject providing for building check-dams in all West-flowing rivers and another Rs 1,000 crore for the Kharland project, Rs 5,000 crore for phase 3 of Upper Krishna Project, Rs 1,000 crore for Rs 1,000 crore for Kalasa-Banduri Nala Diversion and Rs 1,000 crore for building a balancing reservoir at Naville for the Tungabhadra dam.
As many as 234 lakes in the districts of Bengaluru Urban and Rural, Tumakuru and Chikkaballapura by treating Vrishabhavathy valley at a cost of Rs 864 crore and another Rs 455 crore for the second phase of KC Valley project has been provided. All these projects could potentially improve the prospects of the ruling BJP in the Cauvery basin region areas predominantly tilting towards JD(S) and Congress.
Rs 100 cr each to Lingayats, Vokkaligas, Rs 50 cr to Christians
In a bid to woo the politically powerful Veerashaiva or Lingayat and Vokkaliga communities, Rs 100 crore each has been allocated to the Development Boards of the communities. While minority Christian community as well as Marathas have been provided with Rs 50 crore each with another Rs 50 crore for numerically smaller Jains, Sikh and Buddhist communities for their development.
The lager backward, most backward communities spread over the entire State have been allocated Rs 400 crore with another Rs 400 crore for the backward communities like Tigala, Mali, Mali malagara, Kumbara, Yadava, Devadiga, Simpi, Kshatriya, Medara, Kunchi, Kurma, Pinjara/Nadaf, Kuruba, Balija, Idiga and Hadapada coming under Devaraj Urs Development Corporation.
Given the recent controversy over the rejection of the tableau on social reformer Sri Narayana Guru during the Republic Day parade, which had angered the Billava cum Idiga and other backward classes, the budget proposes to mollify the community by proposing to establish Sri Narayana Guru Residential schools in Udupi, Dakshina Kannada, Uttara Kannada and Shivamogga districts.
Multistoried hostel complexes will be constructed in educational centers of the state such as Belagavi, Hubballi-Dharwad, Kalaburgi, Mangaluru and Mysuru to accommodate 1000 each students under “Deen Dayal Upadhyaya Sauharda Vidyarthi Nilaya.’’ The move is aimed at encouraging students from SC/ST, OBC and minority to enroll for higher education. Budgetary allocation of Rs 250 crore has been provide for the new project.
To encourage entrepreneurship among SC/ST women, 25% of the target for self-employment and other programmes of all development corporations under various departments would be reserved for women. Through Indian Institute of Management Bangalore training programme will be provided for 300 graduates belonging to SC/ST communities.
Multiple residential schools operating under various schemes of the minority welfare department will be merged. The budget states that at least one school in each district will be upgraded to PU College and will be modernized by providing smart classes, computer and science labs. These schools would be renamed as APJ Abdul Kalam Residential School and action will be taken to obtain CBSE accreditation. For this project Rs 25 crore has been allocated.
Boon to farmers
The budget has announced a new scheme titled Raitha Shakti to provide diesel subsidy of Rs. 250 per acre to encourage the use of farm machinery and reduce the burden of fuel and the subsidy would be transferred to the bank accounts of farmers through DBT, subject to those having a maximum of five acres. Rs 500 crore for this scheme.
The budget has proposed to increase subsidy for women under Widows' Wage scheme. While Monthly Pension for Sexual Minorities has been increased to Rs 800 crore, acid-hit women's pension has increased from Rs 3,000 to Rs 10,000.
The budget has proposed to establish Namma clinics in major cities and all wards of Bengaluru. These clinics will provide diagnosis and treatment for non-communicable diseases and refer patients to higher facilities for specialist treatment, if required.
Boost for Bengaluru
The Chief Minister announced a new metro line for Bengaluru. As per the government decision a detailed project report will be prepared for construction of the 37 km metro line from Sarjapur to Hebbal, the proposed line goes via Agara, Koramanagala and Dairy Circle. The estimated cost of the project is Rs 15,000 crore.
The government has also made an announcement that the detailed project report for building the phase III of Namma Metro project will be submitted to the central government. Two new lines have been proposed under phase III of Namma Metro project, one connects J P Nagar with Hebbal covering a distance of 13 km and the other one is from Hosahalli to Kadabagere. Total of cost of the project is Rs 11,250 crore.
About ongoing metro projects (phase II and Phase II (A & B), the budget said 33 km under construction metro line will be operationalized next financial year. On the ORR-Airport metro line, 58 km metro line from Central Silk Board to Kempegowda International Airport (KIA) will be completed by March 2025.
Bommai said civil works of Baiyappanahalli to Chikkabanavara will commence soon. The Rail Infrastructure Development Company (Karnataka) Limited – (KRIDE), the implementing agency has already floated the tenders for this corridor. The budget states that the 148 km suburban metro line in the city will be completed by 2026. However, no fresh budgetary allocation has been made for the project.
A 350- bed branch of Jayadeva in Hubballi, and a trauma centre in Tumkuru have been proposed. A 500 children with congenital hearing loss will get cochlear implants under government funds this year. A sum of Rs 1,000 crore has been allocated to improve 100 Primary health care centres.
Sector-wise Allocations
• Agriculture and Allied Activities – Rs 33,700 crore.
• Welfare and Inclusive Growth – Rs 68,479 crore
• Stimulating Economic Growth Rs 55,657 crore.
• Comprehensive Development of Bengaluru Rs 8,409 crore.
• Conservation of Culture, Heritage and Natural Resources – Rs 3,102 crore.
Administrative Reforms and Public Service Delivery-Rs 56,170 crore
• Allocation of grants for Women Empowerment and Welfare in the Budget Rs 43,188 crore.
• (Gender Budget) Allocation of grants for Children Welfare in the Budget – Rs 40,944 crore.
•(Child Budget) Allocation of grants for SCSP/TSP Rs 28,234 crore. Increase over previous year is Rs 2,229 crore.
• Rs 1,000 cr to improve 100 Primary health care centres.
• Rs750 cr for Dr. BR Ambedkar hostels
• Rs 165 cr for Kanakadasa Hostels
• Rs 100 cr for furniture in government high schools and PU colleges.
• Rs 500 cr for the development of infrastructure at government schools of the state.
• Rs 1,000 crore fund has been allocated for completion of Mekedatu project
Department of Housing allocated Rs 3,594 Crore
To cater to health needs of women, the budget has proposed to set up 300 women health centres under NHM. These centres will also act and women welfare centres. This apart, the budget has proposed to upgrade seven taluk hospitals to 100-bed facilities. The State Government will start creches in t2 taluk headquarters per district in areas with a high concentration of working women.
The honorarium for Anganwadi workers has also been increased by Rs 1,500 for those who served for 20 years, and Rs 1,250 for those who served between 10 and 20 years. The budget has proposed a new scheme called 'Poushtika Karnataka' under which fortified rice with added nutrients will be distributed at a cost of Rs 93 crore in 14 districts to tackle malnutrition.
The budget has proposed to set up a Kidwai Regional Cancer Centre at Belagavi at a cost of Rs 50 crore. Rs 89 crore has been allocated to modernise KR Hospital in Mysuru and Rs 1,000 crore for Ramanagara Rajiv Gandhi University of Medical Sciences campus.
Live Updates
2.55 pm - Government sets GST collection targets of Rs 76,743 for 2021-22 fiscal. Revenue collection target for Commercial Taxes Department for 2022-23 fixed at Rs 77,010 crore. Total receipts projected at Rs 2.61 lakh crore. Total expenditure Rs 2.65 lakh crore. Revenue Deficit is estimated at Rs 14,699 cr and fiscal deficit at Rs 61,564 crore, which is 3.26% of GSDP. Total liabilities at the end of 2022-23 estimated at Rs 5.18 lakh cr, which is 27.49% of GSDP. Rs 29,000 crore target for Excise Department and Rs 8,007 crore for Transport Department. Revenue collection target of Rs 15,000 crore for Stamps and Registration Department for 2022-23 fiscal - Bommai
2.40 pm - Rs 56,710 crore provided for administrative reforms and public services sector. Center for Technology Research in Digital Governance in partnership with IIIT-Bengaluru to promote the delivery of services through e-governance. The government will increase subsidies for Kannada films from 125 to 200. Automatic driving testing tracks to be established at a cost of Rs 80 cr at Devanahalli, Kolar, Hospet, Gadag, Ballari, Vijayapura, Bhalki, Yadgir, and Davanagere.Facility to pay tax on monthly basis for vehicles that pay quarterly taxes exceeding Rs 30,000 - CM
2.35 pm - Karnataka Kalagrama will be developed under PPP model. Research centre for 'Arebhashe' to come up at Mangalore University. 'Adopt a Monument' scheme to encourage adoption of monuments of state for protection and development. Tourist guides to get a monthly incentive of Rs 2,000 crore. Eco-budget of Rs 100 crore to compensate for the negative effects created on forest systems 'Blue-Plastic Management scheme' at Rs 840 crore with help from World Bank to address the issue of plastics polluting water resources in coastal areas. KSTDC 'Pavitra Yatre' programme to facilitate tours to piligrimage centres. 30,000 Kashi pilgrims to get a subsidy of Rs 5,000 per person - CM
2.15 pm - DPR for Phase-3 of Bengaluru Metro willbe submitted at a cost of Rs 11,250 crore. It will cover 32 km outer ring road from Hebbal to JP Nagar and 13 km between Hosahalli and Kadabagere. Sky Walk at Rs 45 crore at Banashankari junction to connect the metro station with the bus stand. Rs 55 Crore for connecting metro stations with railway stations at Whitefield, KR Puram, Baiyappanhalli, Yeshwanthpura and Yelahanka.Bengaluru four corridors of Sub-Urban railway projectrunning a length of 148 km to be completed by 2026 at a cost of Rs 15,267 crore. Rs 404 crore for infra works at Sir M Visveshwaraiah, Banashankari 6th stage and Anjanapura layouts. Acquisition of 1,297 acres of land for Kempegowda Layout to be completed soon. Rs 8,049 cr allocated for comprehensive development of Bengaluru. 20 selected schools will be developed as 'Bengaluru Public Schools' at Rs 89 crore. 500-bed super-specialty hospitals in four parts of Bengaluru under the Public-Private model.Rs 1,500 crore to develop mega storm water drains in Bengaluru to prevent flooding in residential areas - CM
2.10 pm - 'Beyond Bengaluru Cluster Seed Fund for Start-ups' will be established in Mysuru, Mangaluru and Hubballi at a cost of Rs 20 crore. A grant of Rs 12 crore will be provided for this project this year. State government to run MySugar factory for two years on an experimental basis. Rs 50 crore has been allocated for the repair of machinery. New textile parks at PPP model at Navalgund and Ranibennur. Global Technology Centre plug and play facility to be established at KSSOU in Mysuru at a cost of Rs 30 crore. Global Emerging Technology Design Centre at Belagavi at a cost of Rs 150 crore in partnership with enterprises. Action to provide more incentives to industries that create more employment. Preference to attract labour-intensive industries - Bommai
2.05 pm - Government to set up 5,000 MW capacity hybrid renewable energy park in 8 districts under PPP model. Mega Jewellery Park' will be established in Bengaluru - to generate employment for 10,000 people. FMCG (Fast Moving Consumer Goods) cluster to come up in Dharwad. A special incentive package will be announced soon. Karnataka Special Investment Region Act will be formulated to establish, operate and control mega industrial regions and to establish mega industrial estates. Tumakuru and Dharwad districts to be notified as Special Investment Region - CM
2 pm - Greenfield Airport at Raichur at a cost of Rs 186 crore with funds from the District Mineral Fund. Proposal for airports at Dharwad and Koppal, and to extend the runway at Mysuru Airport. Heliports to come up at a cost of Rs 30 crore at Madikeri, Chikkamagalur, and Hampi - Bommai
1.55 pm - Rs 300 crore for roads damaged during the rainy season. 1,000 lakes to be developed at a cost of Rs 10 lakh per lake, 2,275 km of state highways to be developed at a cost of Rs 3,500 crore, Re-asphalting of 1,008 state highways at a cost of Rs 440 crore. Karnataka state government to submit the proposal to centre for a 55 km Gadag-Yelagavi new rail line at a cost of Rs 640 crore. The process to implement the Dharwad-Kittur-Belagavi rail line will be set in motionat a cost of Rs 927 crore at the earliest - CM
1.53 pm - Rs 3,000 crore for Kalyana Karnataka Region Development Board. Of this Rs 1,500 cr will be for education, social and economic development, and Rs 1,500 cr for micro-projects, announces CM
1.50 pm - A total allocation of Rs 68,479 crore is being provided for inclusive growth and the welfare sector .Allocation for education, health, skill development, and other welfare depts increased by Rs 6,329 crore - Bommai
1.45 pm - For employment to youth and women, 2022-23 to be observed as 'Jeevanopaya Varsha'. Action plan worth Rs 1,100 crore proposed - CM
1.43 pm - Three lakh houses to come up under various schemes in 2022-23. As many as 10,555 sites will come up under 10 KHB projects. 11 projects are in the stage of preparation and 11,674 sites will be developed.Rs 2,610 crore has been allocated for the welfare scheme and 2.3 lakh construction workers will be benefited from this.100 hi-tech mobile clinics will be started at major places with a high density of construction workers. The bed capacity of ESI hospital from Davanagere and Hubballi to be increased from 50 to 100 - CM Bommai.
1.40 pm - Mmultiple residential schools of the Minority Welfare Department will be merged and renamed as 'APJ Abdul Kalam residential schools'. Rs 25 crore for modernisationof these schools.The government will complete the survey of Wakf properties in the state. Also, the government will offer financial assistance for street vendors, pushcart vendors, etc... from minority community under National Livelihood Mission - Bommai
1.38 pm - Rs 400 crore for the development of backward and most backward communities. Rs 100 crore fund for Lingayat Development Board and Vokkaliga Board.Programmes worth Rs 50 crore to be implemented from Maratha Development Board - CM
1.34 pm - 300 SC/ST women to be trained in entrepreneurship at IIM. Bengaluru Vinaya Samarasya Yojana to eradicate untouchability in the state.Also, the government promises special support for the restoration and development of SC/ST mutts and institutions.Narayana Guru memorial residential schools to come up at Udupi, Dakshina Kannada, Uttara Kannada and Shivamogga, announces CM
1.28 pm - Government to open creches in two taluk headquarters per district in areas with a high concentration of working women.Honorarium for Anganwadi workers increased - by Rs 1,500 for those who served for 20 years, and Rs 1,250 for those who served between 10-20 years.Under a new scheme called 'Poushtika Karnataka' fortified rice with added nutrients to be distributed at a cost of Rs 93 crore in 14 districts to tackle malnutrition.State govt willhelp poor students get loans for admission in government and private medical colleges - Bommai.
1.25 pm - New hospitals to be set up and older ones will be modernised. Kidwai Regional Cancer Centre to come up at Belagavi at Rs 50 crore.Rs 89 crore to modernise KR Hospital in Mysuru. Honorarium of Asha workers to be increased by Rs 1,000. Rs 1,000 crore for Ramanagara Rajiv Gandhi University of Medical Sciences campus. New regional cardiac center at Rs 250 crore to come up in Hubballi - CM
1.20 pm - Government to set up 438 'Namma Clinics' across the state Namma Clinics will be set up in all wards of Bengaluru.75 taluk hospitals to be mapped with Jayadeva Hospital to provide cardiac-related treatment.Government hospitals with more than 200 beds would be converted to teaching hospitals after obtaining approval from NMC.Menstrual cups to be distributed in Chamarajanagar and Dakshina Kannada districts under 'Shuchi' scheme.Mobile clinics to be established at a cost of Rs 11 cr at Bidar, Chamarajabagar, Haveri and Chikkamagalur district - CM
1.16 pm - Rs 1,000 cr to improve 100 Primary health care centres.Rs 750 cr for Dr. BR Ambedkar hostels, Rs 165 cr for Kanakadasa Hostels, Rs 100 cr for furniture in government high schools and PU colleges.Rs 500 cr for the development of infrastructure at government schools of the state.1,000 grama panchayats to be converted to fully literate grama panchayats in two years.Digital libraries to be established across the state.Free coaching facility for KPSC. UPSC, SSC, NEET, JEE andotehr exams under 'Mukhyamantri Vidyarthi Margadarshini' scheme.Honorarium for mid-day meal cooks and helpers increased by Rs 1,000.Seven Karnataka Institute of Technology to come up along the lines of IITs.New model universities to come up in Chamarajanagar, Bidar, Haveri, Hassan, Kodagu, Koppal and Bagalkot districts - Bommai
1.14 pm - Agri and allied sectors to receive Rs 33,700 cr in 2022-23 fiscal, says CM
1.11 pm - The government has allocated Rs 500 cr for the first phase of the Pashchimavahini project - which proposes to build check dams in west-flowing rivers. Rs 1,500 cr has been allocated for the Kharland project. Also,234 lakes will be filled in Bengaluru Urban, Rural, Tumakuru, and Chikkaballapur districts by treating Vrishbavathy water at a cost of Rs 864 cr. And, Rs 455 crore has been sanctioned for the second phase of the KC Valley project - Bommai
1.08 pm - Once getting the nod from the centre, the state government will commence the Mekedatu project. Rs 1,000 crore fund has been allocated for this project. Also, the first phase of the Yettinahole project will be complete. The second phase gravity feeder works to be completed soon. Rs 3,000 cr fund for works related to the project has been allocated, says CM
1.05 pm - Gaushalas to be increased from 51 to 100 in the state. Rs 50 cr allotted for increasing the gau-shalas from 31 to 100 - CM
1.04 pm - 100 new veterinary hospitals will be set up in stages in the state - CM
1.03 pm - The government will increase the compensation for the accidental death of sheep and goatfrom Rs 2,500 to Rs 3,500.Also, to encourage deep-sea fishing, 100 deep-sea fishing boats are to be sanctioned - Bommai
12.55 pm - There is a demand to increase in green space in Bengaluru;governmentwill soon set upa 350 acre Atal Bihari Vajpayee parknear Yelahankaat Yelahanka, says CM
12.56 pm - New agriculture college to come up at Hagari at Ballari district and Athani, Belagavi district. Also, Dharwad Agri University to have a chair on farmers' welfare - Bommai
12.53 pm - Krishi Yantradhaare scheme will be extended to all hoblis of the state. Mini food park in all districts under PPP model soon - CM
12.50 pm - Rs 500 crore fund has been given to Raitha Shakthi Yojana to help marginal farmers in terms of fuel cost for mechanized machines harvest crops - CM
12.46 pm - "GST devolution allocation increased by around Rs 3,000 cr to Rs 27,000 cr by the Centre due to increased GST revenues. Have urged Centre to extend GST compensation for states for three more years" - Bommai
12.45 pm - Karnataka witnessed slow growth due to the Covid pandemic in the last two years. The economy has revived considered revenue collection of the state, says Bommai Service sector grew 9.2%. GSDP growth expected at 9.5%: CM
12.43 pm - 'Panchasutra' for the welfare of the people of the state. Backward areas of the state to be identified in a scientific manner to improve the Human Development Index of all districts: CM
12.38 pm - Education, employment, and empowerment for socially and economically weaker section of the societyis our priority: Bommai
Earlier report
Basavaraj Bommai set to present his maiden state budget
Bengaluru, Mar 4 (IANS): Karnataka Chief Minister Basavaraj Bommai will present his maiden Budget on Friday in the state legislature. The Budget is most likely to be populist and tax free to set the tone right for the upcoming Assembly elections in the state.
The Budget presentation is scheduled at 12.30 p.m.
The Budget assumes importance in the wake of the state general assembly elections scheduled to be held in 2023 and prior to Bruhat Bengaluru Mahanagara Palike (BBMP) elections. Chief Minister Bommai is likely to announce a big bonanza for the city, as the image of the government has taken a beating with the pathetic condition of road infrastructure in the city.
CM Bommai, who hails from north Karnataka region, which is considered as the bastion of the BJP party, is expected to announce a large chunk of funds for developmental activities and programmes. After the Congress padayatra, Bommai has also come under pressure to allot a significant chunk of funds towards the irrigation projects, to show its commitment towards farmers.
According to sources, as all departments are meeting the revenue targets, there is no compulsion as such for CM Bommai to increase taxes. However, the efforts will be made for resource mobilisation and presenting a tax free budget. The farmers as well as the business community ravaged by the Covid pandemic as well as natural calamities in the last year have a lot of expectations from the Budget.
The state is likely to go for loans to the tune of Rs 40,000 - Rs 50,000 crore within the permissible limits, which would take the figures of debts of the state to Rs 5 lakh crore, sources in the finance department said.
Bommai is likely to increase the expenditure by 6 per cent to 10 per cent, taking the total size of the Budget from Rs 2,46,207 crore in the 2021-22 to 2.6 lakh crore for the current year. It is expected that all revenue-generating departments will exceed targets. The state's tax revenue is expected to be Rs 1.21 lakh crore than the earlier figure of Rs 1.1 lakh crore, according to sources in the finance department.