CM Siddu presents Rs 1,63,419 crore budget; abolishes agri income tax

March 18, 2016

Bengaluru, Mar 18: The rate of growth of Karnataka's economy has slowed down from 7.8 per cent during 2014-15 to 6.2 per cent during 2015-16.

Reading out the State budget for 2016-17 in the State Legislative Assembly on Friday, Chief Minister Siddaramaiah, attributed this slowdown solely to decline in growth rate of the agriculture sector.

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The agriculture sector is estimated to decline by 4.7 per cent during this year, mainly due to drought in 137 taluks during kharif and 62 taluks during the rabi crop seasons.

Presenting his 11th budget overall, and the fourth after he assumed office, Chief Minister said decline in farm growth mainly attributable to fall in foodgrains production from 126 lakh tones during 2014-15 to 110 lakh tones in 2015-16 due to drought.

He said the service sector is growing at 9.1 per cent while the industrial sector is expected to register a growth of 4.5 percent during the current year.

In a major relief to planters, the budget proposed to abolish agriculture income tax and it would benefit coffee, tea and rubber and other plantation crop growers.

The total budget size of 2016-17 is pegged at Rs. 1,63,419 crore, of which the plan size is fixed at Rs. 85375 crore, an increase of 17.6 per cent over the plan size of Rs. 72,597 crore during the last year.

Of the 1,63,419 crore, the estimated revenue receipts is pegged at Rs. 1,30,758 crore and capital receipts at Rs. 31,198 crore including borrowings of Rs. 31,036 crore. The fiscal deficit is expected to be Rs. 25,657 crore, which at 2.12 per cent of GSDP, complies with the Karnataka Fiscal responsibility Act.

Agriculture

For redressal of grievances of farmers of the state and converge schemes of agriculture department and other departments, the Chief Minister proposed to set up a Karnataka State Agriculture and Farmers Welfare Committee headed by Chief Minister. Agriculture department and other departments related to welfare of farmers would be brought under the committee.

To give more focus to farmers and effective techniques adopted by them, special agricultural zones would be identified in parts of the State on the lines of SEZs formed for industries.

The budget proposed to develop 100 villages in four districts across four revenue divisions as Model agricultural villages under the “Suvarna Krishi Grama Programme”.

Tax reliefs

The budget exempted from the tax handmade paper and hand-made paper boards, including hand-made paper products manufactured and sold by dealer recognised by the Khadi and Village Industries Board as an eco-friendly measure.

It reduced VAT on office files made of paper and paper boards from the present rate of 14.5 per cent to 5.5 per cent.

It cut VAT from the present rate of 14.5 per cent to 5.5 per cent on articles of nickel, titanmum falling under heading HSN 7505, 7506, and 8108 to encourage aerospace industry.

Other goods that set to become cheaper are: rubber sheet, set top boxes for viewing TV content, multi-media speakers, LED bulbs. Taxes on all these goods reduced from 14.5 per cent to 5.5 per cent.

Mr. Siddaramaiah would seek a Vote on Account for the first four months of the financial year, ending July 31. This has been the norm in Karnataka.

Also Read: Karnataka Budget: liquor, movies, DTH, soft drinks now more expensive

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News Network
December 7,2025

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Mangaluru, Dec 7: A rare bamboo shrimp has been rediscovered on mainland India more than 70 years after it was last reported, confirming for the first time the presence of Atyopsis spinipes in the country. The find was made by researchers from the Centre for Climate Change Studies at Sathyabama Institute of Science and Technology, Chennai, during surveys in Karnataka and Odisha.

The team — shrimp expert Dr S Prakash, PhD scholar K Kunjulakshmi, and Mangaluru-based researcher Maclean Antony Santos — combined field surveys, ecological assessments and DNA analysis to identify the elusive species. Their findings, published in Zootaxa, resolve decades of taxonomic confusion stemming from a 1951 report that misidentified the species as Atyopsis moluccensis without strong evidence.

The shrimp has now been confirmed at two locations: the Mulki–Pavanje estuary near Mangaluru and the Kuakhai River in Bhubaneswar. Historical specimens from the Andaman Islands, previously labelled as A. moluccensis, were also found to be misidentified and actually belong to A. spinipes.

The rediscovery began after an aquarium hobbyist in Odisha spotted a shrimp in 2022, prompting systematic surveys across Udupi, Karwar and Mangaluru. Four female specimens were collected in Mulki and one in Odisha, all genetically matching.

Researchers warn the species may exist in very small, vulnerable populations as freshwater habitats face increasing pressure from pollution, sand mining and infrastructure development. All verified specimens have been deposited with the Zoological Survey of India for future reference.

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News Network
November 29,2025

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New Delhi: Karnataka chief minister Siddaramaiah and deputy CM DK Shivakumar on Saturday put up a dramatic display of unity at a closely watched joint press briefing, firmly dismissing weeks of speculation about a power-sharing tussle within the Congress. With the high command nudging both leaders to sit together and settle the dust, the meeting became a political spectacle, ending with the duo declaring that there was “no confusion, no differences.”

Calling the reports of a rift “manufactured confusion,” Siddaramaiah said the talks had gone smoothly, even joking about their breakfast. “Breakfast was very good. All three of us enjoyed it,” he said. “We want to end this confusion once and for all. For local elections and for 2028, our mission is clear — Congress must return to power. There is no difference between me and DKS, not now, not before.”

He blamed the media for fuelling rumours and reiterated absolute adherence to the party leadership. “From tomorrow, let there be no confusion. What the high command says, we will follow.”

Siddaramaiah also assured that the Assembly session starting December 8 would run smoothly and vowed that Congress would take on the BJP and JD(S) “together.”

Shivakumar echoed the chief minister word for word, stressing loyalty and discipline. “People have given us a massive mandate. It is our duty to deliver,” he said. “This government was formed under Siddaramaiah’s leadership. We both have complete trust in the high command. If they tell me to wait, I will wait.”

He added that the two leaders had discussed strategy for the 2028 Assembly elections. “Whatever the CM says, I agree. We are loyal soldiers of the party. The party may be facing challenges nationally, but we will keep it strong in Karnataka.”

Shivakumar also said Siddaramaiah would soon visit his home for lunch or dinner — another symbolic gesture meant to underline their unity.

Both leaders later posted on social media describing the breakfast meeting as “productive” and focused on “Karnataka’s priorities.”

The BJP, however, rejected the show of camaraderie as “pure bunkum,” accusing Congress of trying to paper over an internal power struggle. But Siddaramaiah and Shivakumar insisted their united front would continue — and that there was “no confusion” within the state leadership.

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December 2,2025

Puttur: The long-cherished dream of a government medical college in Puttur has moved a decisive step closer to reality, with the Karnataka State Finance Department granting its official approval for the construction of a new 300-bed hospital.

Puttur MLA Ashok Kumar Rai announced the crucial development to reporters on Monday, confirming that the official communication from the finance department was issued on November 27. This 300-bed facility is intended to be the cornerstone for the establishment of the government medical college, a project announced in the state budget.

Fast-Track Implementation

The MLA outlined an aggressive timeline for the project:

•    A Detailed Project Report (DPR) for the hospital is expected to be ready within 45 days.

•    The tender process for the construction will be completed within two months.

Following the completion of the tender process, Chief Minister Siddaramaiah is scheduled to lay the foundation stone for the project.

"Setting up a medical college in Puttur is a historical decision by the Congress government in Karnataka," Rai stated. The project has an estimated budget allocation of Rs 1,000 crore for the medical college.

Focus on Medical Education Department

The MLA highlighted a key strategic move: requesting the government to implement the hospital construction through the Medical Education Department instead of the Health and Family Welfare Department. This is intended to streamline the entire process of establishing the full medical college, ensuring the facilities—including labs, operation theatres, and other necessary infrastructure—adhere to the strict guidelines set by the Medical Council of India (MCI). The proposed site for the project is in Bannur.

Rai also took the opportunity to address political criticism, stating that the government has fulfilled its promise despite "apprehensions" and "mocking and criticising" from opposition parties who had failed to take similar initiatives when they were in power. "Chief Minister Siddaramaiah has kept his word," he added.

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