The Centre on Friday held talks with top officials of the Finance Department of Karnataka —currently under President’s rule — to fine-tune the State budget for the financial year 2008-09 with focus on welfare measures for debt-ridden farmers and socially and economically weaker sections.
The meeting chaired by  Finance Minister P Chidambaram was understood to have held a thread-bare discussion on Karnataka’s state of finances including the overall revenue and expenditure position as well the proposed thrust areas of the budget, official sources told Deccan Herald.
As per the constitutional procedure whenever a state is placed under the President’s rule the Union Finance Minister has to present the budget of the state concerned in the Lok Sabha.
At Friday’s meeting held in the North Block housing the Finance Ministry, Karnataka’s Finance Department made a presentation to Chidambaram on the budget proposals for the State for the forthcoming financial year 2008-09.
It is understood that the forthcoming State budget apart from focusing on welfare measures for farmers and weaker sections, would also make higher allocation of funds for development of key sectors like agriculture, irrigation, industry, roads and transport.
Full budget likely
As Karnataka’s assembly election is likely to be held later this year following the issuance of delimitation notification the Centre is understood to be keen for presenting a full budget for the State instead of a vote on account. 
The presentation, based on proposals submitted by various state departments, was made by the Principal Secretary to the Finance Department, M R Srinivasmurthy.
The State officials were understood to have also made a detailed presentation on expected revenue collections under various heads like VAT, State Excise Duty, Stamp Duty and Motor Vehicle Tax, the sources said.
This meeting is the first one chaired by Chidambaram and another two meetings would be held soon before finalising the budget proposals, the sources said.
The State budget will be printed in the high-security Finance Ministry’s printing press — housed in the North block — where the Union budget is also printed.
During the printing, State Finance Department officials will be engaged to bring out both the Kannada and English versions of the budget, the sources said.
The Karnataka budget is likely to be presented in the Lok Sabha by Chidambaram after March 7.