A revenue surplus of Rs 402 crore is estimated for 2023-24 compared to a revenue deficit estimate of Rs 14,699 crore in the 2022-23 budget.
Thanks to the restoration of the State Finances, Chief Minister Basavaraj Bommai resented a revenue surplus budget in compliance with the Fiscal Responsibility Act and a revenue surplus of Rs 402 crore is estimated for 2023-24.
Bommai said due to the Covid-19 pandemic, the state finances were badly affected resulting in non-compliance with the Fiscal Responsibility norms in the past few years. The economic experts had predicted that it will take five years for the revenue surplus budget but it had been achieved within two years.
A revenue surplus of Rs 402 crore is estimated for 2023-24 compared to a revenue deficit estimate of Rs 14,699 crore in the 2022-23 budget. Karnataka has been in the league of states with a high revenue surplus. The fiscal deficit of the state is estimated at 2.6 percent of the GSDP for 2023-24, which is well within the limit of 3 percent prescribed under the KFR Act, Compared to a fiscal deficit of 2.82 percent in BE 2022-23, attempts have been made to reduce the fiscal deficit for next financial year. “We have budgeted a total borrowing of Rs 77,750 crore for 2023-24 which would be used exclusively to fund capital expenditure in the state. Last year we had planned to borrow Rs 72,000 crore but the actual borrowing was less. In 2021-22, the borrowing was Rs 69,000 crore as against the proposed borrowing of Rs 71000 crore. Impetus has been given to increase revenue and less borrowing. Our state is second in GST collection. The State›s growth rate is 7.8 percent as against 6.8 percent of the Government of India,” he said.
BEST PERFORMANCE IN THREE SECTORS
Bommai said the state has posted a robust development in three sectors, primary, second, and tertiary. Karnataka has been able to make a good performance in the agriculture, manufacturing, and service sector thanks to strict governance. Implementation of schemes was possible only when the funds are available and last year, the government issued orders for over 90 percent of the schemes announced in the budget, and the implementation of several schemes has started and others are in the pipeline. For the first time, the capital and revenue expenditure has been 76 percent till January and no government in the past had achieved that number. This means, projects are being implemented.
ACTION TAKEN REPORT
As said in the previous budget, the CM said an additional Rs 2,04,587 crore had been spent. The capital expenditure has increased as well as the implementation of schemes. An Action Taken Report is being supported on the status of implementation of projects including costing. It is wrong that the schemes that were announced in budget 2022-23 have not been implemented. Details will be given project-wise and department-wise.
He said the buoyant revenue in FY 2022-23 enabled him to propose a bugger budget for FY 2023-24 with the budget size crossing Rs 3 lakh crore for the first time in the history of Karnataka. The total consolidated fund (budget) size has increased from Rs 2,65,720 crore in 2022-23 and Rs 3,09,182 crore in 2023-23 budget estimates. This is an increase of Rs 43,462 crore with a growth rate of 16 percent. In the next one and a half months, the entire expenditure will be made. In this budget, the total allocation under SCSP/TSP will be Rs 30,215 crore. In Budget 2022-23 the total allocation was Rs 28,234 crore which is an increase of Rs 1,981 crore. The total allocation for 2023-24 under SCSP/TSP is 24.53 percent of the allocable budget which is more than the 24.1 percent prescribed by the SCSP/TSP Act.
CM’s priority: Farmers, students and THE health sector
In the budget for 2023-24 presented by Chief Minister Basavaraja Bommai, all sectors have been given priority. Special attention has been given to agriculture, irrigation, women empowerment, education and health sector. More funds have been given to these five major sectors and many new projects have been announced. The budget for 2023-24 has been declared as equality for all, equal share for all. Farmers are the backbone of the country. The state government believes that the more emphasis is placed on agriculture, the more prosperous the country will be. Thus, CM Bommai has made many pro-farmer announcements. This time Rs 39,031 crore has been earmarked for the agriculture sector. Through this, organic farming has been encouraged. In the budget of 2023-24, more emphasis has been given to farmers, agriculture and irrigation. Farmers were earlier given interest-free loans of up to Rs 3 lakhs but in this budget it has been increased to Rs 5 lakhs.
Important announcements of budget 2023-24 for the welfare of farmers
- Interest-free short-term loan limit for farmers increased from Rs 3 lakh to Rs 5 lakh
- The target is to disburse Rs.25,000 crore loans to 30 lakh farmers
- 10,000 additional subsidy to Kisan Credit Card holders under ‘Bhoo Siri› scheme to benefit 50 lakh farmers
- Implementation of Jeevan Jyothivima Yojana for 56 lakh small and micro farmer families at a cost of 180 crores.
- Rs.10,000 incentive to encourage farmers growing short millet under Raitha Siri Yojana
- 100 crore for promotion of processing and export of agricultural and horticultural products under RaithaSampad Yojana
- 100 crore grant to Karnataka Grape and Wine Board
- 75 crore to set up hi-tech silk mill market in Shidlaghat
- Establishment of mega dairy with 2 lakh liter milk processing capacity at a cost of 100 crores in Bellary district.
- Revolving fund for purchase of food grains increased to Rs.3,500 crore
- Rs.5,000 crore grant for the implementation of the 3rd phase of the Krishna Melande project
- 1,000 crore for Kalasabhanduri Nala Diversion Project.
After agriculture, the state government has given the most emphasis to the education sector. Several schemes have been announced in this budget to provide higher education to children.
Bommai inspired a radical change in the education sector, giving special priority to poor and middle class students and those studying in government schools and colleges. Rs 37,960 crore has been provided for this sector, 12 percent of the budget has been provided.
Contributions made to the field of education
1. Vidya Shakti Yojana; “Mukhyamantri Vidyashakti” scheme is being launched with a view to encourage higher education. Under this, full fee waiver will be given to all students taking admission in Government Undergraduate and Government Graduate Colleges. 8 lakh students of the state will benefit from this free higher education.
- Under the Vidyavahini scheme, Rs 350 crore has been earmarked to provide free bus passes to 8 lakh girl students of schools and colleges.
- Free bus scheme for children; 19 lakh school and college students in the state depend on public transport to go to schools and colleges. For the benefit of these students, a scheme called
“Child Bus’’ is being launched by the transport corporations, which will benefit an additional 2 lakh students.
- Village Pearl Project; 500
meritorious students completing their schooling in rural government Kannada medium schools
under the scheme “HalliMuthu” will be covered by the Karnataka Examinations Authority for their full vocational education fees selected through the government quota through CET.
- Apart from this, it has been announced in the budget that 73 Karnataka Public Schools and 50 AdarshVidyalayas will be established. Many more job oriented diploma courses will be launched.
Tens of schemes for women empowerment have also been announced in this budget. In this, a scheme of giving 500 rupees per month to women has been announced.
- 500 per month to landless women agricultural workers under the “Grihini Shakti” scheme for women empowerment.
- Skill development training for 1 lakh women to start profitable home based industries
- Rs.1,000 crore grant to provide free bus pass to 30 lakh women working in organized sector
- Action to provide cooked meals to eligible married women in Anganwadis to prevent malnutrition and anemia under “Aarogya Pushti” programme.
- 1,800 crore at zero interest rate to 45,000 self-help women groups in the cooperative sector. Goal of loan disbursement
- Bifurcation of Department of Women and Children into Department of Child Nutrition and Department of Women Empowerment.
- Opening of 4,000 childcare centers in urban areas for building and other construction workers and 500 childcare centers for women under Narega scheme.
10. Rs 50 crore grant for distribution of motor two wheelers to 5,000 differently abled under the “Swachetana” scheme.
9. Measures to provide housing facility and loan facility for self-employment to acid attack victims; Establishment of a special fund in the Women›s Development Corporation to provide quality medical treatment and legal aid
10. Rs.2 crore grant to start 4 Anupalana Griha for boys between 18 to 21 years
11. Decision to give gratuity to Anganwadi workers and helpers; Providing a grant of Rs.40 crore; Allowance for voluntary retirement
The state government has also given more importance to the health sector. In this budget, grants have been provided for clinics which are being built in all assembly constituencies
- Implementation of Arogya Pushti Yojana under the Department of Health to abolish Rs 100 crores grant.
- Two health camps to be organized in 2023-24 for comprehensive health check-up in rural areas under “Mane Heke Aarogya” programme.
- Provision of Rs.12 crore for organizing cancer detection camp. Health screening program for children below 6 years of age under “Vatsalya” programme.
- Extension of free dialysis services up to 1 lakh cycles
- Upgradation of community health centers of seven taluk centers into 100 bedded taluk hospitals
- Establishment of 8 Critical Care Blocks of 50 Beds and 2 Critical Care Blocks of 100 Beds under PM-ABHIM Scheme
- Under “Nagu Magu” scheme, free transport facility for mother and new born baby delivered in taluk hospitals. A grant of Rs. 12.5 crores
- 129 taluk laboratories to provide laboratory services locally
- Establishment of AIIMS Model Hospital in Raichurand Super Specialty Hospital in Kumta
- 6 crores IVF clinic started in 4 medical science institutes in Bangalore, Hubli, Mysore and Kalaburagi
- Action to set up country’s
first dedicated public hospital for organ transplantation at
Nimhans premises at a cost of Rs.146 crore
Rs 6,000 crore reserved to implement 7th pay Commission report
BENGALURU: Chief Minister Basavaraj Bommai has said Rs 6,000 crore is earmarked for the implementation of the 7th Pay Commission report to be submitted by a committee headed by former chief secretary Sudhakar regarding the revision of the salary of the state government employees. He further said any additional amount required for the implementation will be provided in the supplementary budget. The report is expected soon and action will be taken accordingly. The reports of the pay commission will be implemented from FY 2023-24. No matter whether the committee will give its interim or final report the state government will take immediate action. Since the grants have been reserved in the budget there will be no problem with the implementation.