BENGALURU: Showcasing the political will in the face of stiff challenges, Chief Minister H D Kumaraswamy has announced Rs 34,000cr farm loan waiver in his maiden budget presented on Thursday. The flagship programme of JD(S) to woo the rural masses, however, is set to pinch the general class as Kumaraswamy seeks to mobilise the resources needed by imposing an additional tax on petrol, diesel, liquor, electricity and Motor Vehicle Tax on private service vehicles. The budget proposals will come into effect from August 1.
Liquor prices across all the categories have been hiked by 4%, this is in addition to the 8% hike effected by Siddaramaiah in his February 16 budget. The tax rate on petrol has been raised from the present 30% to 32% and that on diesel from 19% to 21%. The household energy bills too will go north as the tax on energy consumed has been raised from the existing 6% to 9%.
The budget also proposes to increase Motor Vehicle Tax by 50% on private service vehicles.
The Chief Minister also proposes to borrow Rs 47,134cr to deliver on his budget promises, which takes total debt burden of the state to Rs 2,92,220cr.
The Rs 2,18,488cr budget is a clear reflection of the political compulsions of Kumaraswamy heading a coalition government with Congress support in the backdrop of genuine doubts about its survival beyond the 2019 Lok Sabha polls. The Chief Minister has shown the urgency to incorporate all major promises of his party, though he had repeatedly stated that he had five years to act on them. These include a monthly allowance for pregnant women and senior citizens.
Thanks to the impact of the political compulsions and resource constraints, the farm loan waiver comes with a maximum limit of Rs 2 lakh and a long list of 15 conditions that exclude government servants and Income Tax assessees from availing the waiver.
It is expected to benefit about 40 lakh farmers. He has also made farmers who have repaid their loans happy by offering credit up to Rs 25,000 in their accounts.
In a path-breaking move that could have a big impact on the future of government schools and education in rural Karnataka, Kumaraswamy has announced offering the option of English medium education in government schools from 5th standard, a move which is sure to cheer the rural populace.
