12 per cent hike in Karnataka budget outlay
The Karnataka budget, presented in Parliament on Monday by Union Finance Minister P Chidambaram, shows an increase of 12 per cent in the total outlay for 2008-09 over the current fiscal and a 22 per cent increase in the plan outlay.
According to the state budget, the total outlay will be Rs 565.42 billion as against the budgeted outlay of Rs 504.66 billion for the current fiscal.
Similarly, the annual plan outlay will be Rs 217.51 billion for 2008-09 as against Rs 177.83 billion. The outlays will be from the state consolidated fund.
The state budget has been presented by the central finance minister as Karnataka has been under the president's rule since November 20 last year in the absence of a popular government after the fall of the one-week-old Bharatiya Janata Party (BJP) ministry as its coalition partner (Janata Dal-Secular) withdrew support.
The state budget has not proposed fresh taxes for the next fiscal.
As per the Karnataka Fiscal Responsibility Act 2002, the budget for next fiscal will have a revenue surplus of Rs 29.73 billion. The fiscal deficit is projected to be within three per cent of the estimated gross state domestic product (GSDP) of Rs 2,440.43 billion.
"By maintaining the revenue surplus and limiting the fiscal deficit to less than three per cent, Karnataka will continue to receive the benefits of debt consolidation and waiver of central loans amounting to about Rs 6.5 billion per year," Chidambaram informed the members.
Thanks to the robust economic growth across the state during 2007-08, the revenue receipts are estimated at Rs 4,618.87 billion, registering an increase of 13.31 per cent over the budget estimates (BE) of Rs 4,076.20 and 13.09 per cent over the revised estimates (RE) of Rs 4,084 billion.
For the ensuing fiscal, the budget estimates tax revenue of Rs 3,144.59 billion, with a projected increase of Rs 47.55 billion or 17.81 per cent over this year's BE of Rs 2,669 billion.
Commercial taxes for this fiscal are estimated to grow by 17.42 per cent to Rs 193.44 billion. Similarly, state excise collections are projected to go up by 20.51 per cent by the end of this fiscal to Rs 56.26 billion.
"The budget seeks to promote the development of human capital in the state by enhanced investments in education, health and social welfare. The budget also seeks to initiate special steps to improve the productivity of the farm sector and the economic condition of farmers," Chidambaram said.
Revenue expenditure for 2008-09 is estimated at Rs 432.16 billion, resulting in a revenue surplus of Rs 29.73 billion.
Capital expenditure is estimated at Rs 101.69 billion. Total expenditure (excluding repayment of loans) will be Rs 533.85 billion as against Rs 478.16 billion in the current fiscal.
Fiscal deficit is estimated to be Rs 69.26 billion, which will be within the limit of three per cent of GSDP.