No new taxes but new 'gaushalas' to mega infra projects: Key takeaways from Karnataka Budget

From allocation to industries to no new taxes being implemented, here are the top takeaways from the Karnataka Budget Speech

Karnataka Chief Minister B S Yediyurappa on Monday announced a slew of measures and allocations in the state Budget. Congress MLAs staged a walkout during the tabling of the budget for 2021-22 by Chief Minister B S Yediyurappa, claiming that the BJP government in the state had no moral right to continue in power.

Here are the key takeaways from the Budget:

1. No new taxes to be levied in the state Budget

Fuel prices are set to remain the same after the CM announced that new taxes will not be levied.

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."

2. Now, all Karnataka districts will have a 'gaushala'

All Karnataka districts will have a 'gaushala' to prevent 'slaughter of cows and to conserve livestock' as CM B S Yediyurappa on Monday announced provisions for the same in the state Budget. He also added that to encourage ayurvedic medicine in veterinary science, a new research institute at a cost of Rs 2 crore will be set up at Veterinary College, Shivamogga.

Also read — Karnataka CM B S Yediyurappa spares citizens, announces no new taxes in Budget

3. Karnataka GSDP dropped to 2.6% due to Covic-19 lockdown

Yediyurappa said that due to the Covid-19 lockdown, Gross State Domestic Product (GSDP) of Karnataka dropped to 2.6 per cent compared to 2019-20 fiscal. He added that the agriculture sector has grown 4 per cent, while the services and industry sectors were down 3 per cent and 5 per cent, respectively.

State revenues will not meet last year's Budget targets, but will admit that there is an imbalance in expenditure and revenue, said the chief minister.

"Tax revenues of both state and Centre and down. As a result, the tax share of states has decreased. GST devolution funds for the year reduced by around Rs 8,000 crore compared to budget estimates," said Yediyurappa.

4. Slew of measures for women safety and empowerment were announced

a. Rs 30 crore allocated for a discounted bus pass for women working in garment factories.

b. Tech-based e-beat during night hours to ensure women's safety will be implemented.

Also read — Now, all Karnataka districts will have a 'gaushala'

c. Excellence centres with the help of NIMHANS and NLSIU will be set up to help women who are subjected to harassment and abuse.

d. Elevate Women programme at a cost of Rs 5 cr to assist women entrepreneurs to be implemented.

e. Women entrepreneurs in the service sector can now avail up to Rs 2 crore loan at four per cent interest.

5. Rs 5,372 crore spent for Covid-19 pandemic

More than 63 lakh people have benefitted from initiatives of the state government, Yediyurappa said. Over 9 crore RT-PCR tests were conducted, he added. He warned of a possible second wave after the state saw a rise in the number of new cases, and stressed on following social distancing norms.

6. Rs 31,028 crore allocated to agriculture and allied sectors

Rs 500 crore has been allocated for the benefit of food startups food park that will be set up in Vijayapura, said Yediyurappa. Reservation for farmers children at Agriculture University has been increased from 40 per cent to 50 per cent.

Also read — Discounted bus passes to loans: What Karnataka Budget offers women

The state government has increased subsidy to 50 per cent for small food processing units with an allocation of Rs 50 crore.

APMCs will be digitised with an outlay of Rs 198 crore. A well-equipped flower market with an outlay of Rs 50 crore will be set up at Byappanahalli. Dry chilli market under PPP model will be set up at Ballari APMC. Grants for Kalasa-Banduri projects will be provided this fiscal, and all clearances to implement them will be obtained, said the CM.

Allocation of Rs 5,600 crore has been set aside for Krishna Bhagya Jala Nigama for irrigation works.

7. Education and skill development

The government has allocated Rs 100 crore to develop 50 schools under the Kendriya Vidyalaya model. Also, Rs 100 crore has also been allocated for the construction of toilets at schools and colleges.

Under a new 'Samarthya-Sarathya' programme, training for five lakh students for competitive exams to be implemented with an outlay of Rs 5 crore.

8. Healthcare Budget

a. ICUs of 25 bed and 6-bed capacities will be established in 19 districts and 100 taluk hospitals, respectively, at a cost of Rs 60 crore over the next two years.

b. Rs 2 crore for Tele-ICU facilities has been allocated. The Ayurvedic College in Shivamogga is set to be upgraded to Ayush University.

c. Regional cancer centres along the lines of Kidwai Hospital will be set up at Mysuru and Shivamogga at a cost of Rs 100 crore.

9. Rs 1,500 crore allocated for minority communities

An allocation of Rs 500 crore for various development corporations of backward communities has been made in the Budget.

A new board for the development of Vokkaligas has been proposed.

The government has allocated Rs 200 crore for the renovation and repair of churches, assistance to orphanages and other facilities.

Construction Workers Welfare Board will be set up to construct four temporary residential facilities in Bengaluru Urban and rural districts, one each in Mysuru, Shivamogga, Hubballi, Kalaburagi, Ballari, Hassan and others. Twenty-five mobile check-up centres will also be set up for construction workers.

Allocation of SCSP/TSP has been decreased to Rs 26,005 crore due to an increase in committed expenditure. Committed expenditure to grow from Rs 1.29 lakh crore in 2020-21 to Rs 1.42 lakh crore.

10. Infrastructure and development projects

a. State's 'Jaladhare' scheme to be integrated with Centre's 'Jala Jeevan Mission'. Bulk water supply will be provided to villages from permanent water sources at a cost of Rs 25,740 crore.

b. Engineering divisions of Rural Development and Panchayati Raj Department will be merged into one to reduce administrative expenditure.

c. Rs 1,500 crore grant will be provided for Kalyana Karnataka Development Board.

d. Rs 3,000 crore has been allocated for the continuation of the special development plan for developing backward taluks.

e. All mega projects costing above Rs 100 crore will be mandatorily evaluated. Drinking water and underground drainage projects by KUWSDB worth Rs 900 crore has been announced in the state Budget.

f. Chief Minister Mega Integrated Industrial Townships to be developed along Bengaluru-Mumbai and Bengaluru-Chennai industrial corridor on a minimum of 500-acre land. Investment of around Rs 10,000 crore is expected in the townships over three years, said Yediyurappa.

g. Karnataka is set to establish a Venture Capital Fund of Rs 100 crore. The state will provide 25 per cent of the fund.

h. Karnataka will float 'Swiss Challenge' tender to take up Peripheral Ring Road works around Bengaluru.

i. Rs 850 crore has been budgeted this year for the suburban rail project. Doubling of Yeshwathpur-Channasandra and Byappanahalli-Hosuru lines is set to be completed by 2023.

j. A total of Rs 7,795 crore has been allocated for the development of Bengaluru.

11. Rs 10 crore has been allocated for the construction of a Yathri Nivas for devotees from Karnataka visiting Ram Temple at Ayodhya.

12. Integrated theme park will be developed downstream of Kabini reservoir in Mysuru under the PPP model at a cost of Rs 50 crore.

13. In a first in India, maps containing details of forest types and density will be prepared in Karnataka using satellites with precision of up to 50 centimetres.

14. A property registration pilot project using blockchain will be implemented at a cost of Rs 1 crore, with the help of IIT-Kanpur to prevent cheating and document tampering. Unified land management system to be developed.

15. Capacity in eight prisons to be increased at a cost of Rs 40 crore. The government will release Rs 10 crore in 2021-22 to develop prisons. At least Rs 15 crore has been allocated for video conferencing facility to produce prisoners before courts.

16. Yediyurappa has set the target for revenue collection for Commercial Taxes at Rs 76,743 crore. To complete the pre-GST legacy audit and to clear tax arrears expeditiously, 'Karasmadhana Scheme-2021' will be implemented.

17. Excise revenue target for FY22 has been set at Rs 24,580 crore. The target for the transport department has been set at Rs 7,515 crore. The target for Stamps and Registration Department set at Rs 12,665 crore. Stamp duty for the first registration of apartments costing Rs 35 lakh to 45 lakh to be reduced to 3 per cent from 5 per cent.

18. For the next fiscal, total receipts are estimated at Rs 2.43 lakh crore. Total expenditure is set to be Rs 2.46 lakh crore, while the revenue deficit is set at Rs 15,134 crore.