Chief Minister Siddaramaiah-led Congress government has made significant allocations for the welfare of the backward classes, dalits and religious minorities (Ahinda communities) in the 2018-19 annual budget.
Mr. Siddaramaiah, in the last budget of his government tenure, offered several sops to various small and marginal communities, including free bus passes for all students from 2018-19.
The budget proposed to waive loans up to Rs 50,000 availed by shepherds from cooperative banks (Rs 52 crore total) and loans availed by below poverty line (BPL) families from Karnataka Khadi Board.
He also announced providing loans up to Rs 50,000 at zero per cent interest for fishermen and increase of old age pension from Rs 500 to Rs 600 for the benefit of 48 lakh senior citizens and destitute.
The Chief Minister, who overall presented his 13th State budget, said the current budget aimed at building Nava Karnataka to realise the new aspirations in the coming days.
Siddaramaiah provided many incentives for people belonging to Ahinda in a move to prevent youth from backward classes and Dalit communities from supporting the BJP.
For the first time, the budget’s total receipts are estimated at Rs 2,02,297 crore in 2018-19. The fiscal deficit is expected to be Rs 35,127 crore, which is 2.49% of the Gross State Domestic Product (GSDP). Total liabilities are at Rs 2,86,790 crore at the end of 2018-19, 20.36% of the GSDP. “This is within the limit of 25% for 2018-19 mandated in the Karnataka Fiscal Responsibility Act.”
The GSDP in 2017-18 has increased to 8.5% against 7.5% in 2016-17. In this year 2017-18, the agriculture sector is expected to grow by 4.9%, industry by 4.9%, while the service sector is expected to register a growth of 10.4%.
Noting that there was a possibility of shortfall in tax collections in the short run, frequent changes in the FST regime and glitches in the IT system have also affected the tax collection, Mr. Siddaramaiah said.
The Budget proposed to give a boost to organic farming, millet crops, groundnut and “Direct Seed Rice” cultivation methods. The allocation for agriculture is set at ₹5,849 crore in 2018-19.
To mobilise additional revenue, the Budget proposed to increase the existing rates of excise duty on Indian Made Liquor by 8%.
The Budget proposes new State Fodder Security Policy, new Textile Policy, Feature Film Tourism Policy, Logistic Policy, Innovation Policy, and Policy for Labour Intensive Industries. It has also proposed to establish “Nirbhaya Kendras” in all offices of Police Commissioners in the State.
The Budget has also proposed to provide 4% reservation in Group A and B posts to persons having disability as per the Rights of Persons with Disabilities Act, 2016. The government has already reserved 5% in Group C and D posts.
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