JOIN USKarnataka Chief Minister B S Yediyurappa presents 'no pain, no gain' Budget
Sparing citizens of any new taxes, Chief Minister B S Yediyurappa on Monday presented a Rs 2.46 lakh-crore Budget in which he attempted to woo farmers, women and various social groups while not announcing any big-ticket or populist programmes.
The pandemic-induced economic crisis was written all over the 2021-22 Budget, which was a revenue deficit one, as Yediyurappa tried to offer something for everybody with whatever is available.
It was widely expected that Yediyurappa would increase taxes on excise or fuel to mop up resources. “I am not willing to put the burden of additional taxes on the common people,” he said, calling it a “people-friendly” Budget.
However, the government will borrow Rs 71,332 crore to fund developmental activities.
“In the midst of the pandemic, maintaining a balance between fiscal discipline and equity in development has given the experience of walking on a razor’s edge,” Yediyurappa said.
Yediyurappa reached out to women, who make up half of Karnataka’s population, in a big way by announcing schemes worth Rs 37,188 crore for them. These include schemes to help women entrepreneurs.
While the Budget has offered Rs 21,000 crore to irrigation schemes, it is far less than what is required. For instance, the much-delayed Upper Krishna Project-3 needs Rs 51,000 crore, but it has been given Rs 5,600 crore. The Mahadayi project got Rs 1,667 crore, but this is subject to clearance from the Centre.
Yediyurappa, looking to keep his pro-farmer image, has offered Rs 500 crore to boost organic farming. Also, reservation for farmers’ children in agricultural universities is up from 40% to 50%. He also kept Rs 25 crore for research into yellow leaf disease affecting arecanut. Several such micro interventions have been announced for farmers.
In what is seen as a political move, Yediyurappa has announced the formation of a new board for the Vokkaliga community, which will get Rs 500 crore. This comes close on the heels of Rs 500 crore that Yediyurappa gave for Veerashaiva-Lingayats, the community that he belongs to.
Besides this, Yediyurappa doled out Rs 500 crore among 16 community-based boards and corporations in an apparent effort to form a social coalition in his favour. Also, Brahmins have been given Rs 50 crore. He has earmarked Rs 1,5000 crore for the development of minorities and Rs 200 crore for Christians.
“This Budget has been formulated in a most difficult situation,” Yediyurappa said. “From this point of financial constraints, this is a balanced Budget bringing relief in the difficult situation.”