Union budget a catalyst that can revive economy: Karnataka CM Yediyurappa

Calling it a pro-poor and pro-middle class budget, Yediyurappa said that the budget presented by union finance minister Nirmala Sitharaman will act as a “speed booster” to the pandemic-impacted economy

Karnataka chief minister BS Yediyurappa on Monday said that the union budget “has come as a catalyst that can revive this sluggish economy.”

Karnataka Chief Minister BS Yediyurappa. (ANI)

Calling it a pro-poor and pro-middle class budget, Yediyurappa said that the budget presented by union finance minister Nirmala Sitharaman will act as a “speed booster” to the pandemic-impacted economy.

“It is impossible to expect a better budget amidst the pandemic. Despite that, this is a pro-poor and pro-middle class budget,” he said in Bengaluru on Monday.

The union government extended the funding of ₹14,788 crore for phase 2A and 2B of the Bengaluru Metro rail project.

“This is the biggest gift to Karnataka from our own finance minister,” Yediyurappa said.

Sitharaman also added that the 278km Bengaluru-Chennai expressway work will be taken up this fiscal.

Despite being one of the highest tax contributors to the central coffers, Karnataka has seen a significant amount of revenue loss due to devolution and share in goods and services tax (GST).

“Our budget is dependent on how much the Centre gives the state,” said one senior government official, requesting not to be named.

The official added that Karnataka has raised the issue of revenue losses with the Centre on all forums and requires capital to fund its schemes and programmes to be proposed in the upcoming budget.

Yediyurappa has indicated that the size of the state budget could shrink as a result of Covid-19 and the reduction in funds from the Centre.