Karnataka Chief Minister HD Kumaraswamy presented the second budget of his coalition government on Friday. HD Kumaraswamy who is popularly called as the HDK is in power since the last 8 months with the support of the Congress.
The budget was 96 pages document. It has several new tax proposals which can pinch your pocket. The CM who is also the finance minister has proposed a slew of new projects for both for the state and for the capital city Bengaluru.
With a huge allocation for all the departments, districts and the castes, CM tried to balance his budget. Here is your easy guide for the state budget.
One of the important tax proposals in the budget is increase in the excise duty on various alcohol products. CM hasn’t proposed any other new taxes.
Overview Of Karnataka Budget 2019-20
A Surplus Budget
According to the state budget, the total receipts are estimated to be Rs. 230,738 crore during 2019-20. The Budget estimates envisage revenue receipts of Rs. 181,863 crore and Capital Receipts of Rs. 48,876 crore including borrowings of Rs.48,601 crore.
The total expenditure is estimated to be Rs. 234,153 crore consisting of revenue expenditure of Rs.1,81,605 crore, capital expenditure of Rs. 42,584 crore and debt repayment of Rs. 9,964 crore.
Revenue surplus is estimated to be Rs. 258 crore. The fiscal deficit is expected to be Rs. 42,051 crore, which is 2.65% of GSDP. Total liabilities at Rs. 327,209 crore at the end of 2019-20 are estimated to be 20.60% of GSDP. This is within the limit of 25% for 2019-20 mandated in Karnataka Fiscal Responsibility Act.
Agriculture Sector
CM HDK proposed more financial support for zero budget farming, organic farming. He announced a grant of Rs. 40 crores to Zero budget farming and Rs.35 crores for the organic farming scheme.
Adding to this CM also announced Grading of Organic and Zero budget farm produce, encouragement to grading and
packaging and branding units; 50% subsidy to eligible entrepreneurs and Start-up entrepreneurs with a grant of Rs.2 crore.
- Grant of Rs. 145 crore to Israel model farming scheme.
- The Grant of Rs.250 crore to Krushi Bhagya scheme. Direct cash transfer to millet growers: to encourage the millet farming with cash incentive of Rs. 10,000 per hectare under “Raitha Siri” scheme with a grant of Rs.10 crore.
- A grant of Rs. 5 crore to encourage “Country chicken Poultry Farming” (Nati Koli Sakanike) for 10,000 unemployed poor youth.
- Cooperative department – Establishment of a “Debt Relief Commission” in Karnataka after the Kerala model.
Major Irrigation
- Grant of Rs. 1,563 crore for Lift Irrigation Projects
- Rs.1,680 crore for Tank filling projects
- Rs. 445 crore for Comprehensive Tank Development Works
- Rs.477 for Micro irrigation projects
- Rs.860 crore Canal modernization- development works
- Rs.160 crore for construction of Bridge and Barrages
- Rs.506 crore for Infrastructure development works
- Rs.125 crore for Manchanabele reservoir downstream garden development, and for development tourism activities
- Rs.75 crore for rejuvenation works of Harangi reservoir achcut and river basin works
Forest, Environment and Ecology
- Grant of Rs. 100 crore to control human-elephant conflict by constructing rail track barriers under the project – ‘Prevention of Human-Elephant Conflict by Used Rail Barriers’.
- Grant of Rs.60 crore to Karnataka State Pollution Control Board for development of 21 Districts laboratories, 16 Sub- laboratories and for purchase of 10 Automated Flow Analyser.
- Grant of Rs. 2 crore to Climatic Change Strategic Knowledge Centre under Environmental Management and Policy Research Institute (EMPRI) to take up research and study relating to climate change.
Education
- Modernization of infrastructure in schools; Construction of 1500 new classrooms
- Up- gradation of 5000 classrooms
- Distribution of learning equipment to 1000 schools and appointment of one Estate Manager for the maintenance of school buildings.
- Establishment of 1000 Karnataka Public Schools in the next 4 years in Hobli Headquarters to provide education under one roof from pre-primary level to 12th class.
- Separate organizations and guidelines on Kendriya Vidyalaya Model.
- Action to make CET examination conducted by Karnataka Examination Development Authority online.
Health
A grant of Rs.950 crore for “Ayushman Bharath – Arogyakara Karnataka” by the State and only Rs. 409 crore by the Central Government for the year 2019-20.
- Establishment of D.N.B. Centres at 11 selected districts and taluk hospitals at a cost of Rs. 2 crore with a view to ameliorate the shortage of Specialists.
- Sports Injury and Robotic Surgery: A grant of Rs. 10 crore for Sports Injury and Robotic Surgery facility at Sanjay Gandhi Institute of Trauma and Orthopedics, Bengaluru.
- Mammogram and Papsmear Scanning facilities in 10 districts at Mangaluru, Tumakuru, Vijayapura, Chitradurga, Davanagere, Bagalakote, Chikkamagaluru, Haveri, Kolar andChikkaballapur at a cost of Rs. 10 crore.
Karnataka Budget 2019-20 – What Is In Store For Bengaluru City?
Bengaluru got lions-share in the Karnataka Budget 2019-20. Here are a few projects which benefit one and all:
A grant of Rs.50 crore for implementation of a comprehensive mobility scheme is allotted. Priority for public transport and stabilization; all aspects of all types of movement facilities in the; grant to increase the number of buses in BMTC.
Development of at least 50 KM pedestrian road and implementation of Nava Bengaluru Kriya Yojane at an estimated cost of Rs. 8,015 crore is proposed. A grant of Rs. 2,300 crore in the year 2019-20 has been proposed.
Other projects include a grant of Rs.1,000 crore to construct elevated corridors in the year 2019-20, converting 5 lakh road lights in Bengaluru into LED.
Another major proposal is establishing a 400 metric tonne capacity solid waste processing unit through KPCAL under PPP. Government decided to go ahead with the elevated corridor may face the public ire.
No Vehicles On Brigade Road And Commercial Street
Brigade road and Commercial street are known for their vehicle density. But CM wants to make them vehicle free. He has been proposed an action to convert Commercial Street and Brigade
End To Parking Woes
CM also proposed enacting “Parking Rules and Implementation Policy” in Bengaluru. Action to park 10,000 vehicles on 87 selected smart parking systems. CM also announced financial grant for a new underpass at Goragunttepalya at a cost of Rs.195 crore. Additional loop construction on the existing Hebbal and K.R.Puram Flyover is also proposed.
Push To Commuter Train
In his budget speech, CM HDK proposed implementing highly ambitious Sub-urban rail services in the Bengaluru at a total estimated cost of Rs.23,093 crore. This service is popularly called as the commuter train. A Special Purpose Vehicle (SPV), Bengaluru Rail
Infrastructure Development Entity (B-RIDE) under the State and Central Government partnership will be formed to implement the scheme.
Other Major Proposals
Other major proposals proposed in the budget include to ease the traffic of the city include the:
- Study of the feasibility of the design for Multi Modal Transport Hub at Hebbal, Byappannahalli, K.R.Puram, Kadugodi, Challaghatta and Peenya area
- Development of necessary infrastructure for Inter-Modal Integration design in Bengaluru Metro, Rail, and TTMC strategically located at Yeshwantapur, Banashankari, Vijaynagar, Peenya etc.
Other commuter friendly initiatives include commuter’s card for Metro and BMTC services, converting the 3 coach into 6 coaches of 50 Rail sets, charging facility to two wheeler electric vehicles in selected 10 Metro stations, small capacity buses from BMTC in 10 selected Metro stations to provide last mile connectivity, and extension of the western end of Kengeri Metro Network and construction of an additional station at Challaghatta are the other major proposals.
Easing The Traffic Woes
Bengaluru is infamous for its traffic woes. It is often identified across the globe due to its traffic problems. Taking the issue seriously, CM announced budgetary allocation for the Namma Metro project.
The proposals include a metro line from Central Silk Board (CSB) junction to the Outer Ring Road-Airport via K.R. Puram, Hebbal at a cost of Rs.16,579 crore.
New Peripheral Ring Road
Peripheral ring road proposal mooted long back to decongest the city. CM HD Kumaraswamy announced a financial grant for this ambitious project in his budget. In his budget speech, he announced that construction of Peripheral Ring Road with an estimated cost of Rs.17,200 crore and Rs.1,000
crore in the year 2019-20.
Cauvery Water For All
Cauvery water is the most sought after commodity in the Bengaluru city. CM announced a grant of Rs. 500 crore in Karnataka budget 2019-20 for the work of V Stage Cauvery Water Supply Scheme. Once this scheme is implemented, the water woes of the city expected to get solved. CM also proposed work to prevent 914 entry points wherein sewerage is mixing with storm water drain in Bengaluru at a cost of Rs. 76.55 crore.
Tax Proposal
Beer is one of the commonly consumed drink. Once this budget is approved, the beer expected to become more costly with CM HDK increasing the excise tax.
In his budget speech, HDK has proposed increase Additional Excise Duty on Beer from 150% to 175%.
Additional Excise Duty on Draught Beer from 115% to 150%, Excise Duty on Beer manufactured in Micro Brewery from existing Rs.5per BL to Rs.10per BL and Additional Excise Duty from existing Rs.12.50 per BL to Rs.25per BL.
CM also proposed an increase in the Duty on Low Alcoholic Beverages (LAB) from existing Rs.5 per BL to Rs.10 per BL and Additional Excise Duty from 122% to 150%.
GST Plan
Chief Minister HDK proposed an ambitious revenue collection target of Rs. 66,920 crore for the current year under the head Goods and Services Tax (GST). Revenue collection target from the Commercial Taxes Department for the year 2019-20 is fixed at Rs. 76,046 crores.
What Is In Store For Startups?
- In Agriculture sector, the CM announced 50% subsidy to eligible entrepreneurs and Start-up with a grant of Rs.2 crore.
- Helping of Startups in Bengaluru City area by strengthening the “Incubation Centre”.
- Action to set up “Infonomics” in the Department of Public Administration and Reforms (e-Governance) for providing required information to the Startups and agencies at an appropriate cost.
Also See
- Karnataka Budget 2022 – Highlights
- Karnataka GI – The State Leads the Way
- Khajane – Karnataka’s Online Treasury System
- About Karnataka Government
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- List of Firsts In Karnataka – Government Schemes that are A ‘First’ in the State
- Karnataka Budget 2018 – Key Takeaways That You Should Know
- All You Need To Know About Karnataka Budget 2020