Fine budget. Will it be implemented?

It comes into effect in next fiscal in April 2023, by which time the model code of conduct for Assembly elections due in May, would be in force

With elections round the corner, the right approach for the government would have been to obtain the approval of the legislature for a vote on account, authorising essential spends like payment of salaries for the next three months, instead of a full-fledged budget. The 2023-24 budget presented by Chief Minister Basavaraj Bommai has no more value than an election manifesto as none of the proposals and promises can be implemented by the present government. The budget comes into effect at the beginning of the next fiscal, that is, April 2023, by which time the model code of conduct for the Assembly elections, which are due in May, would be in force.

Yet, Bommai went ahead with the budget formalities because he obviously did not want to miss an opportunity to woo voters. However, to the Chief Minister’s credit, he has not allowed himself to be swayed too much by electoral pressures and has even succeeded in restoring fiscal discipline, which had suffered due to the pandemic.

Also Read | Bommai's last Budget has BJP poll prospect riding on it

While last year’s budget had projected a revenue deficit of Rs 14,699 crore, which was brought down to Rs 5,996 crore in the revised estimates, Bommai has now projected a revenue surplus of Rs 402 crore. The fiscal deficit has come down from 3.26 per cent of GSDP projected in the previous budget to 2.6% now. The total liabilities are estimated at 24.20% of the GSDP, as against 27.49 in the previous budget. Thus, all parameters of the Karnataka Fiscal Responsibility Act, 2002, have been met. At over Rs 3 lakh crore, this is the biggest ever budget outlay to date. While that’s all good, it remains to be seen if the budget math adds up on paper and in practice.

Also Read | Karnataka Budget 2023: Key takeaways from CM Bommai's speech

Keeping elections in mind, the budget offers sops to all sections, be it SC/STs, minorities, women, farmers, students, and even aspiring soldiers. However, the overall allocations for education and health remain at 12% and 5% respectively, though in a welcome move the Chief Minister has waived off payment of fees in all government PU colleges. The Chief Minister also granted Rs 9,698 crore for the comprehensive development of Bengaluru, even as questions are being raised on what the BBMP has done with the Rs 28,000 crore allotted to it over the past six years.

While further commentary on the details of the budget is unnecessary given that it is possible that the budget we see post-election might be different, the positive takeaway is the adherence to fiscal discipline signalled, which sets the right tone for the next government. Yet, political parties must think how they adversely impact the sanctity and credibility of the budget process when they present a full budget just 2-3 months ahead of elections.