While announcing the 13th budget of his political career, Karnataka Chief Minister Siddaramaiah broke the record of the highest number of budgets presented by any minister. It was also one of the longest budget speeches that lasted almost four hours and 10 minutes. The Rs 2,09,181 crore budget presented on Friday is the largest yet for the state.
Talking about the performance of his government, Siddaramaiah said the state’s GDP grew at the rate of 8.5 percent in 2017-18, an increase from 2016-17’s GDP growth rate of 7.5 percent. He further added that demonetisation and GST has severely affected the state’s revenue.
Basavanna, the financial expert, my Guide: Siddaramaiah
In his introduction, Siddaramaiah said that the 12th century social reformer Basvanna is his guide. “Basavanna was a financial expert too. Basavanna, who was the finance minister in the court of Bijjala I, is my guide,” said Siddaramaiah.
Salary Hike for Government Employees
In the budget, Siddaramaiah presented the recommendations of the sixth state pay commission that proposed a 30 percent hike for government employees at the cost of Rs 10,508 crore. This hike will benefit 5.93 lakh government employees and 5.7 lakh pensioners in the state.
Farm Loan Waiver and Agriculture
Farm loan waiver has been the main poll issue in Karnataka. Ahead of the polls, Siddaramaiah government, which had earlier waived off loans up to Rs 50,000 from cooperative societies, announced that the government would waive off loans up to Rs 1 lakh of farmers.
However, these loans will be waived off only in case of the farmer’s death. Once again, only loans from primary agriculture credit cooperative societies will be waived off.
Siddaramaiah also announced a direct income assistance programme, Raita Belaku, for dryland farmers. Under the scheme, Rs 5,000 to Rs 10,000 per hectare will be transferred directly into the accounts of farmers growing rainfed crops.
The budget also approved a new Agriculture College to be set up in Chamrajnagar, and two new agriculture research centres as well.
An additional Rs 769 crore has been allocated for agriculture, taking the budget allocation for agriculture from Rs 5,080 crores to Rs 5,849 crore.
Universal Health Scheme
Announcing one of his flagship projects, Siddaramaiah said that the Universal Health Scheme (Arogya Karnataka Yojane) will be implemented from February 2018. CM also announced the setting up of 9,000 health and wellness centres by upgrading sub-centres, for over 5,000 population, over the next seven years.
Full Fee Waiver for Girl Students in Govt Colleges
The full fees of all girl students in government-run institutions for PUC, graduation and post-graduation courses will be waived, said CM.
CM announced a total allocation of Rs 26,846 crore, which is nearly 20 percent higher than last year for the Education sector.
It also announced that CCTV cameras will be installed at government primary and high schools in a phased manner.
District, city and taluk libraries to be upgraded as digital libraries. To develop scientific temper among students, mobile science laboratories will be established in all districts.
Liquor to Get Costly
Karnataka government has increased the duty on liquor by eight percent.
"I propose to increase the existing rates of additional excise duty on IML by eight percent from second slab to 18th slabs,” Siddaramaiah said.
These slabs cover close to 95 percent of the liquor brands in the state.
The department expects a revenue of Rs 18,750 crores during 2018-19 financial year from the excise department.
The government, in the last budget too, had increased the additional excise duty on liquor to 21 percent from 18 percent, while abolishing VAT of 5.5 percent on beer, wine and hard liquors, which led to an increase in the price of liquor between four percent and 12 percent.
Incubation Centre for Startups
The government has proposed the setting up an incubation center, to promote startups in the state, in Kalburgi district. The project will be implemented at a cost of Rs 5 crore, in association with Deshpande Foundation.
The government will also set up a Karnataka Innovation Authority under the chairmanship of the Chief Minister. Also, to promote the designs of entrepreneurs and design of products, a Centre for Excellence in Designs will be established.
As part of the budget, Belagavi will also get a mini 3D planetarium at a cost of Rs 3 crore.
Incentives for Inter-Caste Marriages
In an attempt to do away with untouchability, the CM announced Rs 3 lakh for any boy from the SC community who marries a girl from another caste. Similarly, an SC girl marrying out of caste will receive Rs 5 lakh. The scheme will be extended to devadasis as well.
Siddaramaiah also added that one member of from the Pourakarmika community will be nominated as a member in Urban Local Bodies.
In addition, around 680 manual scavengers are to be given loans for land purchase under Ganga Kalyan Scheme.
Support to Students from Backward Classes
Siddaramaiah has announced special coaching classes for 2,000 candidates from the backward classes, who are preparing for central and state civil service examinations, banking exams and other competitive examinations. The training will be given through established and prestigious training institutes in the state.
Similarly, free pre-examination coaching for students from the backward communities, preparing for JEE, NEET, GATE, GMAT entrance examinations, will be provided special coaching as well.
The monthly scholarship for PhD candidates from backward classes increased from Rs 5,000 to Rs 10,000. Rs 10 lakh loan, at an interest rate of six percent for youth from backward classes for the self-employment.
Law & Order and Transport
Ratio of women police officers will be increased by 25 percent in the next five years. Toilets will be constructed for women in all police stations in the state.
A permanent police services recruitment board will be established to institutionalise police recruitment.
Rs 5 crore will be spent to construct a memorial for policemen who were martyred. Also, a cyber forensic laboratory will be established at the cost of Rs 5 crore.
A high security prison will be constructed in Mangaluru city and high security branch will established in Bengaluru central prison.
Karnataka government has proposed launching 10 double decker bus service between cities, which will be the first of its kind in the country. Almost 1,000 BMTC buses in Bengaluru will be fitted with CCTV cameras, under the Nirbhaya scheme.
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