BENGALURU: Brickwork Ratings, the Indian credit rating agency, has rated the state as having the highest expenditure on economic services in which agriculture, irrigation, energy and transport sectors account for about 44 per cent of the total expenditure.
The recently released edition of the state finances handbook by the agency has assessed all the states on their criteria looking at their ability and willingness to honour debt obligations. The criterion considers an analysis of political, economic, budgetary, financial and institutional parameters deemed relevant to the state government’s creditworthiness. The state has also been ranked as one of three states, along with Goa and Gujarat, who have managed to control their administrative expenses.
The economic expense of the state includes expenditure of 44 per cent on agriculture, irrigation, energy and transport sectors.
Incidentally, Karnataka also fares well in its allocation towards social expenses. The focus on agriculture has been affirmed by the presentation of a separate budget for agriculture and allied activities, a trait it shares with Andhra Pradesh and Odisha.
Not surprisingly, the state also leads the service sector with its ever expanding IT/BPO/KPO sector, beating out Tamil Nadu, Maharashtra and Andhra Pradesh. Together these states account for about three fourths of India’s IT exports.