Chief Minister Siddaramaiah can boast of presenting the record 17th budget and also being the longest-serving chief minister of Karnataka, surpassing D Devaraj Urs. Known for his asserted spending on social justice, social commitments, women’s financial autonomy, uplift of backward communities and gender equality — one of the United Nations’ Sustainable Development Goals — his record 17th budget is, as usual, a traditional “share to all sections of the society” without any innovation, projection, or focus.
In today’s fast-paced global economy, the role of fiscal policy in shaping public policy remains a cornerstone of economic strategy, and for a critical eye, this aspect of the budget is undoubtedly missing in Siddu’s budget.
This primarily depends on how government revenue is collected and spent, and how it influences economic activity, public services, and social welfare. Added to this is the current slogan that it is not the ease of business but the speed of doing business that the governments will have to concentrate on for developing a state’s economy.
Government spending, taxation policies and budget management are expected to directly influence the speed of doing business, economic growth, and stability. But, in this budget there was a galore of promises made with fewer incentives for economic growth, and the state’s spending pattern in the current fiscal exhibits a widening gap between capital expenditure and revenue expenditure.
The demand for infrastructure has been met with limited investment. From setting right bad roads to irrigation to reducing the cost of installation of a transformer, there is a growing demand for investment in infrastructure.
But there seems to be a shortage of receipts to spend on these, while debt is increasing. It shows that about 44% of the expenditure is going towards non-productive elements, and investment on education and health seems to have lost, though in smaller percentages. In matters of social commitment, the budget has been able to support smaller communities like washermen, artisans etc.
If youth protesting for jobs, the protest by KSRTC staff and threats by contractors are seen as indicators of failing governance, the government seems to be spending on its expanded activities, rather than qualifying what it has -- leading to mismanagement. From the use of SC/ST funds for guarantees to Almattti backwater compensation to be given in crores, the state seems to be moving to clear them slowly without prioritising them.
Some political pundits have blamed it on Sidduji’s distractions in matters of leadership change. As a common man thinks -- this budget seems to increase his/her worries as the living costs are growing and income or salary is not a match for it. MSMEs are craving for importance and infrastructure, but minimum wages, power tariff increases are a hurdle, as industrialists opine.
A green and climate-friendly budget is still a far-off dream as people who grow tobacco in the CM’s home town are busy felling trees. KSRTC is under loss, ESCOM is not improving, farmers death and migration has not stopped, but the government seems to have taken no cognisance of that. “Budget is the science of public happiness was how Keynes saw his work as an economist.” But Siddaramaiah seems to have forgotten that.
He referred to the analogy that there is a need to support the cow that milks more, blaming in silence the GST returns to the state by the Centre. In his 11 theories-based budget presentation for over three hours, Siddaramaiah proved that he is a hard-working CM even at this age. But it did not help him to satisfy the opposition or the economists in general.
There are some good points in his budget too. Age relaxation to skill training to 104 new schools, not allowing 16-year-olds the social media - parents will bless him. Elections to college and university will impress his high command.
Renaming Victoria Hospital as Shantaveri Gopal Gowda hospital is oneupmanship for BJP. But does this bring votes to Congress is a doubtful proposition. The budget of Siddhuji is an inclusive-for-all-kind of budget with no better future for Congress.