Karnataka Chief Minister B S Yediyurappa said the budget tabled by him in the state assembly on Monday was balanced and people-friendly without hiking tax rates or levying new taxes despite the pandemic and natural calamities.
During the Budget Speech, he said, “I am not willing to put the burden of additional taxes on the common people. State Government levies Karnataka Sales Tax (KST) on petrol and diesel. This is already lesser compared to other southern states. Despite this, in the 2021-2022 Budget, no taxes including Karnataka State Tax on petrol and diesel has been increased and Budget has been formulated in such a way so as not to increase the financial burden on the common man.”
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Despite floods and the pandemic, the agricultural sector brought cheers to the State by recording a remarkable growth of 6.4% in 2020-21. Industrial and service sectors contracted by 5.1% and 3.1%, respectively.
Yediyurappa, who presented his third budget as the Chief Minister, allocated Rs 24,6207 crores against the state budget of Rs 22,9925 crores, registering an increase of over 7%.
Economic activities in the state had come to a standstill and revenue collection was adversely hit due to natural calamities, floods, and COVID-19 pandemic, he told reporters after presenting the state budget for the year 2021-22.
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Against the budgeted estimates, the state expected to spend at least 94 percent of the total expenditure. This year is the result of strict fiscal discipline in the initial months of the financial year and recovery of the state economy in the last quarter, the Chief Minister explained.
According to him, the fiscal deficit in 2021-22 will be Rs 59,240 crore against the current fiscal’s Rs 46,072 crore. The revenue deficit will be Rs 15,134 crore. The Chief Minister said he has made an honest effort to maintain a balance in the budget by giving importance to all classes, all sectors, and all districts.
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Yediyurrapa said the state has spent Rs 5,372 crore for tackling the pandemic and 63.59 lakh beneficiaries of different sectors have been given assistance. “About 1.91 crore people have undergone RT-PCR tests since the end of February. The free treatment has been provided to 9.53 lakh patients. 90 lakh food packets have been distributed to laborers at construction sites. Assistance has been provided to 16.45 lakh construction workers, 11,770 artisans, and 51 lakh farmers,” he added.
The government also reduced stamp duty for the registration of apartments valued between Rs 35-45 lakh from 5% to 3%.
Allocation for various sectors
Yediyurappa, who also holds the finance portfolio, allocated Rs 31,028 crore for the agriculture sector, Rs 62,150 crore for the welfare and inclusive growth sector, Rs 29,688 crore for education, Rs 27,386 crore for urban development, Rs 21,181 crore for water resources, Rs 16,516 crore for the energy sector, Rs 16,036 core for rural development and panchayat raj, Rs 52,529 crore is allocated for providing stimulus to economic activities in the state while states capital Bengaluru has been allocated Rs 7,795 crore.
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Excise revenue collection target increased by Rs 1,880 crore
Yediyurappa announced that the revenue collection target for the Excise Department for the year 2021-22 is fixed at Rs 24,580 crore. This has been increased from Rs 22,700 crore.
“The revenue collection target for the Excise Department for the year 2020-21 has been fixed at Rs 22,700 crore and a revenue of Rs 20,900 crore has been mobilized till the end of February. It is hoped that the target will be achieved,” Yediyurappa said.
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