JOIN USKarnataka Budget: CM B S Yediyurappa has to get his 'fundas' right amid funds crunch
Faced with a mammoth financial challenge, Chief Minister B S Yediyurappa will present the budget for the 2021-22 fiscal on Monday. His budget speech — Karnataka Vikasa Patra 2021 — will begin at 12.05 pm and the budget size is expected to be slightly larger than the Rs 2.35 lakh crore presented in the previous fiscal.
Expectations are high on Yediyurappa to ease the burden on the common man caused by an increase in fuel prices, even as he faces a major crisis on the revenue generation front. The trend of resorting to increased borrowings to offset the growing revenue deficit of the state — caused by various factors — will likely continue.
Though new schemes could be offered as lip service to continue the budgetary tradition of big ticket announcements, committed revenue expenditure of the government is expected to cross the 90% mark. “This will leave less than 10% of the funds for development projects or welfare schemes,” sources said.
Yediyurappa will have to come up with some innovative measures to increase revenue, despite the economy being on a downswing following the Covid-19 pandemic.
He will be under pressure to improve the growth trajectory. The state will also face a major challenge adhering to the parameters of the Karnataka Fiscal Responsibility Act.
The Opposition has already cornered the government with queries on the source of budgetary funding, accusing the BJP government at the Centre of delaying release of funds to the state.
Apart from massive differences in budgetary outlays and actual release of funds to the state, the Centre has also dragged its feet over release of grants of centrally sponsored schemes and projects, affecting development activities.
The CM is expected to prioritise agriculture, women and child welfare, health and tourism sectors in the budget.