BENGALURU: While the poll-bound states of Tamil Nadu, Kerala, Assam and West Bengal got the lion's share of key infrastructure projects, Karnataka's biggest takeaway from the Union Budget 2021-2022 was the announcement of a project extension of Rs 14,778 crore under the Bengaluru Metro. The allocation for expansion of 58.19 km for Bengaluru Metro Phase 2 (A) and Phase 2 (B) was announced by Finance Minister Nirmala Sitharaman as part of the Rs 1.10 lakh crores allocation for the National Railway Project.
Karnataka will also stand to gain out of the Bengaluru-Chennai expressway. While these were the only Karnataka-specific infrastructure projects that find mention in the budget, policy changes and relief including a reduction in import duties for the manufacturing sector, MSMEs, tax exemptions for startups, and fresh allocation for the health and education sector are expected to boost Karnataka's entrepreneurship.
"It is impossible to expect a better budget amidst the pandemic. Despite that, this is a pro-poor and pro-middle class budget. The Union Finance Minister has announced necessary strategies for economic revival as well as containment of the pandemic," said Chief Minister BS Yediyurappa as he hailed the budget for 2021-2022. He even deemed the allocation for Bengaluru Metro as the "biggest gift" for Karnataka. The state's request to the Union government earlier in January to fund the multi-crore Yettinahole drinking water project, however, found no mention in the budget.
Even as the government welcomed the budget, the opposition said the state has not received its dues. "Neither has the state received anything nor have the youth or the COVID-19 frontline warriors received any relief," said DK Shivakumar, President, KPCC.
The Union government's announcements on disinvestment, push for single-person startups, extended tax holiday for startups etc have been welcomed by the industry.
"Other positives include the higher spending on infrastructure, the push for bank privatisation, increased funding for strengthening the public sector R&D and innovation ecosystem, as well as increasing the FDI cap in insurance from 49% to 74%. Monetisation of public sector assets including land is an important policy plan which must be implemented expeditiously to support the mega infra projects,” said Kiran Mazumdar Shaw, Executive Chairperson, Biocon Ltd, while adding that it was a reassuring budget overall.