Karnataka Chief Minister Basavaraj Bommai presented a ₹3.09-lakh crore budget for FY24. Coming ahead of the Assembly elections, the State budget largely addressed diverse sections, with something for everybody.
The budget for the first time, post-pandemic, was a revenue surplus one, with receipts expected to be more than expenditure by ₹402 crore. The fiscal deficit is expected to be ₹60,581 crore which is 2.6 per cent of the gross state domestic product (GSDP). Total liabilities at the end of 2023-24 are estimated at ₹5,64,896 crore, which is 24.2 per cent of GSDP.
Bengaluru, infamous for its infrastructure issues, got an allocation of ₹9,698 crore for ‘comprehensive’ development of roads aimed at solving traffic congestion and flooding.
Support for farmers
The Budget had a slew of schemes and provisions for farmers including hiking limit on interest-free loans for farmers to ₹5 lakh, from ₹ 3 lakh; ₹10 lakh investment in each Farmer Produce Organisation; and development of 1,000 small tanks.
On the education front, the State has introduced a new CM Vidya Shakti Scheme for students in order to enable continued higher education, students will be provided free education in Government Pre-University and Degree Colleges. The scheme is aimed to benefit 8 lakh students.
Also read: To woo farmers, Karnataka CM Bommai raises interest-free loan term limits, agri subsidies
Profession tax limit hiked
The budget also saw a proposal to simplify Profession Tax and to raise tax exemption limit from to ₹25,000 per month from ₹15,000 for salaried employees.
The agriculture and allied activities sector was allocated ₹39,031 crore; welfare, and inclusive growth sector ₹80,318 crore; measures for economic growth ₹61,488 crore; culture, heritage and natural resources conservation ₹3,458; and administrative reforms and public service delivery ₹68,585 crore.
Additionally, Chief Minister Bommai has announced the setting up of a Start-Up Park near Kempegowda International Airport at a cost of ₹30 crore. A 24x7 Cyber Security Operation Centre will also be established aimed at ensuring the safety of government websites, online services, and data centers. Cloud-based State Data Centre 3.0 will be set up at a cost of ₹590 crore for various departments of the Karnataka government and PSUs, Bommai said in his last Budget speech before the elections.
Also read: Karnataka Budget 2023-24, a tightrope walk for Chief Minister Bommai
L Ravindran, President, Bangalore Chamber of Industry and Commerce said “the Budget is inclusive and has addressed key critical areas by promoting industry, energy transmission, the welfare of unorganised workers, skill development, and entrepreneurship training.”
In addition, the focus on women’s welfare and their safety, higher grant for child welfare, support to farmers, steps to enhance tourism opportunities, and proposal to expand the slab for professional tax for salaried employees, among other announcements are steps thoughtfully taken towards promoting an inclusive society, he added.