Bengaluru, Mar 5 (GCCurrentAffairs) Karnataka Chief Minister B S Yediyurappa, who also holds the Finance portfolio on Thursday presented a Rs 143 crore revenue surplus budget for the year 2020-21, with a total outlay of over Rs 2,37,893 crore, in the Assembly here.
Mr Yediyurappa was given a warm welcome when he entered into the House to present the budget, the seventh time, by the ruling BJP members.
He had estimated a total revenue estimates accounting for Rs 233,134 crores, as against the total expenditure of Rs 237,893 crore.
Stating that the revenue surplus of the state, for the year 2020-21 was expected to be Rs 143 crore, he said that the fiscal deficit of the state was expected to be Rs 46,072 crore which is at about 2.55 per cent of the Gross State Domestic Product.
While the total liabilities of the state accounts for Rs 368,692 crore, the Chief Minister stated that the extent of liabilities was well within the limit of 25 per cent of the GSDP, as mandated in the Karnataka Fiscal Responsibility Act.
Mr Yediurappa, who had given more priority to boost the agriculture sector in terms of outlay,
had also given thrust to the Industrial development, maintaining lead in the service sector and also
Social security measures.
Mr Yediyurappa, who had set a target of total revenue receipts for the year 2020-21 had hiked the rate of tax on
sale of petrol and diesel by over 3 per cent. While the increase rate of tax on petrol will go up from the present 32 per cent to 35 per cent, the diesel will go dearer with a tax hike from 21 per cent to 24 per cent.
While the Chief Minister has raised the bar of tax collection from Stamps and Registration to Rs 12655 crore, for the year 2020-21, he had reduced the stamp duty on first time registration of new apartments and flats costing less than Rs 20 lakh from the existing 5 per cent to 2 per cent.
The Chief Minister, in his attempts to mobilise additional taxes, hiked the Excise duty from the sale of liquor by 6 per cent and set a target of excise tax collection to Rs 22,700 crore as against the last year’s target
of Rs 20,950 crore.
While Mr Yediurappa had allocated Rs 29768 crore towards Education sector, he had earmarked Rs 21308 crore for water resources, Rs 17290 crore for Energy, Rs 15000 crore for Rural Development and Panchayat Raj, Rs 9444 crore for Social Welfare, Rs 7889 for Agri sector and Rs 11463 crore for the Public works, and Rs 20122 crore for Health sector.
Stating that Bengaluru city contributes over half of the of the contribution of Karnataka GSDP, the Chief Minister had made a special grant of Rs 8344 crore, for the overall development of the city.
He also announced to formulate an exclusive Municipal Corporation Act for Bengaluru city.
Praising the Union government for taking measures to notify the Tribunal order on the inter-state water dispute, on sharing of Mayadayi river, he also announced a grant of Rs 500 crore to take up the drinking water
project under Kalasa Banduri Nala Project.