<p>For the first time, the State budget is being presented prior to the Central budget. It is not binding on a state to present its budget only after the general budget. Gujarat Chief Minister Narendra Modi has been presenting the budget every year before the Centre does.<br /><br />However, all these years in Karnataka, the State’s fiscal document was presented only after the Union Finance minister tabled the general budget in Parliament.<br /><br />First of its kind<br /><br />The chief minister will present a separate budget document exclusively for agriculture and allied sectors, claimed to be the first of its kind the country. <br /><br />The document consists of allocations and special announcements pertaining to departments of Agriculture, Horticulture, Irrigation, Sericulture, Cooperation, Animal Husbandry, Sugar, Agriculture Marketing and Fisheries, prominently. <br /><br />It also makes references to the departments of Rural Development and Panchayat Raj and Energy partially.<br /><br />The irrigation sector is expected to get a major thrust in the budget following the Krishna Waters Disputes Tribunal’s verdict. Many irrigation projects, pending over many years, need funds. The government has to allocate a major chunk of funds to reap the benefits of the verdict.<br /><br />Soon after assuming office as chief minister in 2008, Yeddyurappa had announced that he had a wish to table a budget with an outlay of Rs one lakh crore before he demitted office. Recently, he indicated that he might fulfil his dream this year, though he did not disclose any plan to demit office soon.<br /><br />Farm loans<br /><br />The chief minister has already announced farm loans at a subsidised interest rate of one per cent through cooperative banks in his maiden agriculture budget. As of now, farmers get loans at 3 per cent interest and the government reimburses the average differential interest rate at 7.5 per cent. The government will have to shell out more in the form of subsidy if the interest rate is reduced further. <br /><br />Yeddyurappa has the task of achieving a balance between popular schemes and the fiscal discipline. In the current fiscal year, the government incurred an additional expenditure of Rs 6,300 crore on subsidies, distribution of sarees to mothers of ‘Bhagyalakshmi’ chidlren and many foreign junkets.<br /><br />An impressive collection of commercial taxes to the tune of Rs 18,847 crore till January 31 this year might help the chief minister achieve the balance. The collection is expected to achieve its target of Rs 22,500 crore this year. <br /><br />Besides, the State government may go for borrowings, to mobilise funds to meet all requirements.<br /><br />Highlights<br /><br />* Presented before the Centre’s budget, as done in Gujarat. <br />* First agriculture budget.<br />* Farm loans at 1 pc interest<br />* Major chunk of funds for irrigation, power.<br />* New populist programmes expected.<br />* Borrowings anticipated to meet fund requirements.<br />* Balance between popular schemes and the fiscal discipline.<br /></p>
<p>For the first time, the State budget is being presented prior to the Central budget. It is not binding on a state to present its budget only after the general budget. Gujarat Chief Minister Narendra Modi has been presenting the budget every year before the Centre does.<br /><br />However, all these years in Karnataka, the State’s fiscal document was presented only after the Union Finance minister tabled the general budget in Parliament.<br /><br />First of its kind<br /><br />The chief minister will present a separate budget document exclusively for agriculture and allied sectors, claimed to be the first of its kind the country. <br /><br />The document consists of allocations and special announcements pertaining to departments of Agriculture, Horticulture, Irrigation, Sericulture, Cooperation, Animal Husbandry, Sugar, Agriculture Marketing and Fisheries, prominently. <br /><br />It also makes references to the departments of Rural Development and Panchayat Raj and Energy partially.<br /><br />The irrigation sector is expected to get a major thrust in the budget following the Krishna Waters Disputes Tribunal’s verdict. Many irrigation projects, pending over many years, need funds. The government has to allocate a major chunk of funds to reap the benefits of the verdict.<br /><br />Soon after assuming office as chief minister in 2008, Yeddyurappa had announced that he had a wish to table a budget with an outlay of Rs one lakh crore before he demitted office. Recently, he indicated that he might fulfil his dream this year, though he did not disclose any plan to demit office soon.<br /><br />Farm loans<br /><br />The chief minister has already announced farm loans at a subsidised interest rate of one per cent through cooperative banks in his maiden agriculture budget. As of now, farmers get loans at 3 per cent interest and the government reimburses the average differential interest rate at 7.5 per cent. The government will have to shell out more in the form of subsidy if the interest rate is reduced further. <br /><br />Yeddyurappa has the task of achieving a balance between popular schemes and the fiscal discipline. In the current fiscal year, the government incurred an additional expenditure of Rs 6,300 crore on subsidies, distribution of sarees to mothers of ‘Bhagyalakshmi’ chidlren and many foreign junkets.<br /><br />An impressive collection of commercial taxes to the tune of Rs 18,847 crore till January 31 this year might help the chief minister achieve the balance. The collection is expected to achieve its target of Rs 22,500 crore this year. <br /><br />Besides, the State government may go for borrowings, to mobilise funds to meet all requirements.<br /><br />Highlights<br /><br />* Presented before the Centre’s budget, as done in Gujarat. <br />* First agriculture budget.<br />* Farm loans at 1 pc interest<br />* Major chunk of funds for irrigation, power.<br />* New populist programmes expected.<br />* Borrowings anticipated to meet fund requirements.<br />* Balance between popular schemes and the fiscal discipline.<br /></p>
