Before Feb budget, Karnataka CM Siddaramaiah to table supplementary estimates at session

Chief Minister Siddaramaiah is likely to present the 2024-25 budget in February with an eye on the Lok Sabha polls, amid fiscal pressures posed due to the five guarantee schemes. 

The finance department, which reports to Siddaramaiah, has already started preparations for the 2024-25 budget. 

In a recent circular, Finance Secretary (Budget & Resources) P C Jaffer reminded all administrative departments to send in their estimates for the next year’s fiscal while noting that most of them have not submitted the required details. 

“In the wake of the upcoming Lok Sabha elections, the budget has to be tabled before the end of February 2024,” Jaffer stated, asking departments to treat this as priority. 

Before that, Siddaramaiah is likely to table a mini-budget of sorts in the form of supplementary estimates at the Belagavi session of the legislature to provide for additional expenditure incurred in the current fiscal. 

Supplementary estimates are additional expenditures incurred by the government over and above the budget provisions.

According to sources, there is pressure from departments to provide for additionalities.

It is said that departments are asking for more grants towards clearing pending work bills among other things.

There is also pressure on ministers from lawmakers who are seeking grants. Some MLAs are arguing that grants are needed to meet the needs of communities, mutts and villages, failing which they will be seen in a negative light. 

It is said that the supplementary estimates will cover fiscal commitments towards Centrally-sponsored schemes and an estimated Rs 500 crore towards disaster management. 

Fiscal position

The state government has estimated total receipts for the current fiscal at Rs 3.24 lakh crore of which it has garnered Rs 1.06 lakh crore, or 32%, up to September, according to the latest finance department data.  

Halfway into the fiscal, the state’s revenue collection target is yet to breach the 50% mark. 

The government expects own tax revenues of Rs 1.73 lakh crore against which collection is at 44.36%. From devolution of union taxes, the state expects Rs 37,252.21 crore, but so far, it has received Rs 16,609.98 crore (44.59%). 

Efficient revenue collection is crucial for the Congress government to fund the five guarantees, which are expected to cost the exchequer Rs 52,000 crore a year.

This fiscal, Siddaramaiah has set aside Rs 39,815 crore to implement the five guarantees - Shakti, Gruha Jyothi, Anna Bhagya, Gruha Lakshmi and Yuva Nidhi.