BENGALURU: With the main focus on generating funds to roll out the five guarantees that Congress promised during its campaign for the May 10 Assembly elections, Chief Minister Siddaramaiah on Friday presented a Rs 3,27,747-crore state budget, proposing to hike excise duty on Indian Made Liquor and beer by 20%, and increase borrowings, guidance value of immovable properties, stamps & registration duty and motor vehicle tax.
In his record 14th budget (seventh as CM), Siddaramaiah, who also holds the finance portfolio, proposed the hike in liquor prices (including beer) to set a new excise revenue target of Rs 36,000 crore, while proposing to raise Rs 86,068 crore through increased borrowings; Rs 25,000 crore through raising stamps & registration duty and upward revision of guidance value; and Rs 11,500 crore through upward revision of motor vehicle tax. This is to meet the annual Rs 52,000 crore estimated expenditure to sustain the five guarantees reaching 1.3 crore families across the state.
As the state is in the middle of the financial year, it is estimated to spend Rs 35,410 crore on the guarantees, which is over 14% of the total revenue expenditure. Siddaramaiah has borrowed close to Rs 10,000 crore, which is more compared to Bommai government’s budget presented in March 2023.
Money for guarantees will go to liquor shops, says HDK
Defending the guarantee schemes, Siddaramaiah iterated that they are not freebies. “An economic plan that does not guarantee security is of no use. For the plan to be acceptable, it must be economical and secure,” he said. He said his government would mobilise resources needed for implementing the guarantees without causing any burden to the people. “Our government will reform tax collections, prevent tax leakages along with controlling unnecessary government expenditure.
Management of fiscal resources and efficient administration is an art and science. It is better to understand that it is not just a message on social media platforms.
Our government is committed to implementing the projects effectively,” he said. Siddaramaiah did not announce any mega projects with the main focus on the guarantees, minority welfare and social welfare schemes, agriculture and Bengaluru development. He announced a Christian Development Corporation and development of pilgrimage centres of Jain, Muslim and Sikh communities. He said gig workers, serving as delivery personnel in e-commerce companies, will get an insurance cover of Rs 4 lakh.
Throughout his budget speech, Siddaramaiah criticised the previous BJP government in Karnataka and the Union Government. He said people of the state suffered during the pandemic due to “a non-responsive administration”. Former CM Basavaraj Bommai said, “Instead of focusing on the future of the state, Siddaramaiah’s budget is full of criticism of our government as well as the Centre. For everything, he has taken 2013 as a benchmark, and it looks like Siddaramaiah has presented a reverse gear budget.” JDS floor leader HD Kumaraswamy said, “The money given to people in the name of guarantees will go to liquor shops,” he added.
GIST OF BUDGET
According to the budget presented by CM Siddaramaiah, the total revenue receipts estimated for 2023-24 is B2,38,410 crore against a total expenditure of B3,27,747 crore. The revenue receipts include B1,75,653 crore of own tax revenue, (including GST compensation), B12,500 crore anticipated from non-tax revenue, devolution of B37,252 crore and grant-in-aid of B13,005 crore estimated to be received from the Union Government. This is expected to be supplemented by gross borrowings of B85,818 crore, non-debt capital receipts of B23 crore and loan recoveries of B228 crore, taking the estimated total revenue receipts to B3,24,478 crore. The total expenditure includes B2,50,933 crore (revenue), B54,374 crore (capital) and loan repayment of B22,441 crore.