Karnataka CM presents deficit budget with no additional taxes, says it's 'one of hope'

"The budget 2022-23 is one of hope. The hope to grow and the hope for a better future," said CM Bommai
Karnataka CM Basavaraj Bommai (Photo | EPS)
Karnataka CM Basavaraj Bommai (Photo | EPS)

BENGALURU: Chief Minister Basavaraj Bommai on Friday presented a deficit budget for the year 2022-23. In his maiden budget, the CM did not put the burden of additional taxes on the common man. As per his budget estimates, total receipts is Rs 2.61 lakh crore, while the total expenditure is estimated to be Rs 2.65 lakh crore. Like his predecessor, Bommai too presented a deficit budget. "The budget 2022-23 is one of hope. The hope to grow and the hope for a better future," the CM said.

While the revenue deficit is estimated to be Rs 14,699 crore, fiscal deficit is Rs 61,564 crore which is 3.26 per cent of GSDP. The Union government has facilitated Karnataka to obtain loans of up to 4 percent of GSDP during 2021-22 as part of its support to states to overcome the economic slowdown due to the Covid impact. Though states are allowed to borrow up to 3.5 per cent of GSDP, the state government has restricted the borrowing to 3.26 per cent.

"By this we have demonstrated our commitment to fiscal discipline,'' he said. Stressing on the previous year's budget borrowing, Bommai said though they had proposed to borrow Rs 67,100 crore, they restricted borrowings of Rs 63,100 crore and for the year 2022-23, the state government has proposed to borrow Rs 72,000 crore. Taking a cue from the BS Yediyurappa budget, the CM presented a sector wise budget and compared to 2021-22, the allocation to all sectors is more.

Repeating the popular line coined by the central government and Prime Minister Narendra Modi, CM Bommai said his government is working with "Sabka saath and Sabka vikas'' vision and adopted the 3E mantra -- Employment, Education and Empowerment -- for the upliftment of weaker sections. Bommai also announced the Pancha Mantra that stresses inclusive and comprehensive economic and social development, emphasis for protection and upliftment of weaker sections, identification of backward regions, achieving higher development and to build Nava Bharathakkagi Nava Karnataka (New Karnataka for New India).

Bommai in his budget mentioned the difficulties faced by the state during Covid and the economic slowdown. He said that on a positive note there seems to be rebounding of revenue collection. He also mentioned that GST collection has increased.

As expected, the budget has emphasised on the agriculture and irrigation sector (Rs 33,700 crore), social welfare sector (Rs 68,479 crore) and stimulating economic growth (Rs 55,657 crore). For heritage and culture, he has allotted Rs 3012 crore and for administrative reforms, it is Rs 56,710 crore. With BBMP polls expected anytime this year, Bommai has announced Rs 8409 crore as against Rs 7795 crore in Yediyurappa's budget.

The CM announced Rs 1000 crore for the Mekedaatu reservoir project. The Congress has taken out a padayatra demanding the implementation of the project. The state is waiting for clearances from the Centre to take it up.

Budget highlights

  • No new taxes
  • Mekedatu project gets Rs 1,000 crore
  • More allocation to all sectors compared to 2021-22 budget
  • 'Namma Clinics' in major cities and all wards of Bengaluru, where services of detection of non-communicable diseases and referral for higher treatment to specialists will be provided.
  • More funds (Rs 8,409 crore) for state capital Bengaluru
  • Boost to education sector as it gets 12 percent of the budgetary allocation (Rs 31,980 crore)
  • Eco-Budget of Rs 100 to compensate for the negative effects created on the forest system due to natural and human interventions
  • For the first time in the country, ‘Blue-Plastic Management Scheme’ to be introduced to address the issue of plastics polluting water resources in the coastal areas at a cost of Rs 840 crore
  • Number of Goshalas to be increased to 100, while launch of ‘Punyakoti Dattu Yojane’ to encourage adoption of cows
  • To decongest traffic at the busy Goraguntepalya Junction and enable signal free movement of vehicles, grade separator and flyover works to be taken up

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