Karnataka Budget key takeaways: Petrol, diesel prices hiked; alcohol to be more expensive

Karnataka Chief Minister B S Yediyurappa, on Thursday, presented his seventh Budget at Vidhan Soudha in Bengaluru.

The size of the 2020-21 Budget has been set at Rs 2.37 lakh crore. In his Budget, BJP's Yediyurappa addressed key issues faced by the state during last year's floods which caused significant damage to the infrastructure and livelihood of the citizens. He claimed that there has been a shortfall of Rs 8.83 crore from the centre as compensation for flood relief.

Get all the Karnataka Budget 2020 Highlights here

BSY announced that the Centre's revised estimates reduced the State's share of central taxes by Rs 8,887 cr. This was apart from Rs 3,000 cr pending as GST compensation. Therefore, the State is forced to cut funds from various departments.

Here are the key highlights of Budget 2020-2021:

1) Mahadayi project: Rs 500 cr to be allocated for the Kalasa-Banduri project. The CM further announced Rs 5,000 cr for the lift irrigation project.

2) The CM announced a change in the petrol and diesel prices in the state. Petrol prices to be hiked by Rs 1.60, whereas, Diesel to be expensive Rs 1.59.

READ: Attention all Karnataka vasis! Petrol, diesel prices to cost more

3) In 10 Karnataka cities including Bengaluru, CM allocated Rs 2,000 crore to provide infrastructure to un-authorised slums.

4) In the education sector, the BJP government announced a new initiative wherein the students need not take bags to school on every second Saturday. The budget also ensures at least 25 per cent seats of government residential schools are allotted to students from the same taluk.

5) Rs 32,259 crore has been allocated to the agriculture sector. To ensure minimum support price for crops, contingency fund to be increased to Rs 2,000 cr.

6) For the first time, Children's budget was presented. Rs 36,000 cr project to be started under the budget. Funds to be spent on the overall development of children

7) BSY also increased excise duty on Indian Made Liquor (IML) across 18 slabs by six per cent.

8) Rs 55,732 cr has been announced for stimulating the economic growth in the state. The Government aims to collect Rs 82,443 from commercial tax.

9) Karnataka government proposed to implement an electric bike taxi project in Bengaluru to boost last-mile connectivity in public transport. The government has allocated Rs 10 crore for the same. State also announced to grant Rs 100 cr to add 500 ordinary electric buses to the BMTC fleet.

10) BSY government allocated Rs 66 crores for the construction of Kempegowda statue at the Kempegowda International Airport.

11) In 10 Karnataka cities including Bengaluru, CM allocated Rs 2,000 crore to provide infrastructure to un-authorised slums.

12) Fiscal deficit has been pegged at Rs 46,072 cr, which is 2.55 per cent of GSDP. Total liabilities at Rs 3,68,692 cr, which is 20.42 per cent of GSDP.

13) To facilitate all Government Departments to function in one building, twin towers building with 25 floors will be constructed at Anand Rao Circle, Bengaluru, with an expenditure of Rs 400 crores.