Karnataka Budget Highlights: CM BS Yediyurappa spares citizens from new taxes this Budget

Faced with a mammoth financial challenge, Chief Minister B S Yediyurappa presented the budget for the 2021-22 fiscal today (March 8). His budget speech — Karnataka Vikasa Patra 2021 — began at 12.05 pm. Some of the highlights of the budget include special loan assistance with low-interest rates to women entreprenuers, Rs 850 crore budgeted this year for the suburban rail project in Bengaluru, the introduction of Swiss Challenge' tender to take up Peripheral Ring Road works around the capital city, Mega Integrated Industrial Townships to come at Bengaluru-Mumbai and Bengaluru-Chennai industrial corridor, Rs 463 crore provided as a grant for the Dharwad-Kittur-Belagavi line, 150 government ITIs (Industrial Training Institutes) to be upgraded at a cost of Rs 4,636 crore to create the trained human resources and more. Stay tuned to DH for more detailed reports.

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Grant of Rs 50 crore has been set aside to provide an top-up subsidy of 15% from state govt to increase the 35% subsidy given by the Centre to Food Processing and Post Harvest management units under Atmanirbhar Bharat Nirbhar to 50%.

The special incentive scheme in the ESDM sector and Chief Minister’s Mega Integrated Industrial Townships at two places, each in an area of a minimum of 500 acres is expected to attract an investment of Rs. 15,000 crores creating 5 lakh jobs, says the CMO

No hike in taxes on petrol, diesel and liquor

Taking note of the stress on citizens over Covid-19-induced economic hardships, BS Yediyurappa has decided not to hike taxes on fuel and liquor.

Read more |Karnataka CM B S Yediyurappa spares citizens, announces no new taxes in Budget

CM BS Yediyurappa announces a special fund to set up 31 gaushalas, one for each district across Karnataka.

Read more | Now, all Karnataka districts will have a 'gaushala'

CM S S Yediyurappa announces a slew of welfare schemes for women

CM BS Yediyurappa announced special loan assistance for up to Rs two crore with a low 4-percent interest rate for women entrepreneurs in addition to discounted bus passes andassurance of more security for travelling inmass transport vehicles.

Read more |Discounted bus passes to loans: What Karnataka Budget offers women

Key takeaways from Karnataka Budget 2021-22

Karnataka Chief Minister B S Yediyurappa on Monday (March 8) made a slew of announcementsin the state Budget 2021-22.

CongressMLAs led by main opposition leaderSiddaramaiahstaged a walkout during the tabling of the budget,claiming that the BJP government in the state had no moral right to continue in power.

Must read | No new taxes but new 'gaushalas' to mega infra projects: Key takeaways from Karnataka Budget

CM BS Yediyurappa concludes the budget session. The Legislative Assembly is adjourned for today atVidhana Soudha.

To complete pre-GST legacy audit and clear tax arrears expeditiously, 'Karasmadhana scheme-2021' will be implemented. The revenue collection target for Commercial Taxes is Rs 76,743 crore, said BSY.

Stamp duty for the first registration of apartments costing Rs 35 lakh to 45 lakh to be reduced to 3% from 5%.CM sets the target for Stamps and Registration Department to Rs 12,665 crores.

The excise revenue target for 2021-22 fiscal is Rs 24,580 crores. The target for the transport department is Rs 7,515 crore.

The revenue deficit is Rs 15,134 crores. Total liabilities breached the 25% GSDP (Gross State Domestic Product ) mark. Rs 4.57 lakh crores liabilities at the end of 2021-22, dropping by 2.6% of GSDP, says CM.

For the next fiscal, total receipts are estimated at Rs 2.43 lakh crore. Total expenditure will be Rs 2.46 lakh crore, added B S Yediyurappa.

CM allocatesRs two crore for the development of facilities in the Government Flying Training School at Jakkuru.

Maps containing details of forest types and density in Karnataka state with 50-centimeter satellite resolution will be prepared. First of a kind effort in the country, says CM B S Yediyurappa.

A property registration pilot project using blockchain will be implemented at a cost of Rs one crore, with the help of IIT, Kanpur to prevent cheating and document tampering. Unified land management system to be developed, BSY added

Also,Rs 25 crore to be released this year for the construction ofpolice stations. Rs 200 crore to be allocated in the next five years for 100 police stations.

Capacity in eight prisons to be increased at a cost of Rs 40 crore.Governmentto release Rs 10 cr in 2021-22. Rs 15 cr for video conferencing facility to produce prisoners before Courts online, added BSY

CM budget announcement related to tourism sector

1) Integrated theme park to come up downstream of Kabini reservoir in Mysuru under PPP model at a cost of Rs 50 crore

2)Tourism Department to implement projects worth Rs 500 crore

3) Weekend Tourism Circuits to be identified around Bengaluru.

Rs 10 croreallocated for construction of a Yathri Nivas for devotees of Karnataka state visiting Ram Temple at Ayodhya.

Also, Rs one crore will be allocatedfor staging the theatrical performance of writer SL Bhyrappa's 'Parva' through Rangayanas in the state.

Rs 7,795 cr allocated for comprehensive development of Bengaluru city

Rs 850 crore budgeted this year for the sub-urban rail project. Doubling of Yeshwathpur-Channasandra and Byappanahalli-Hosuru lines to be completed by 2023, said BSY

Koramangala Valley Rajakaluve Development and Maintenance project at Rs 169 crore, BSY added.

Bengaluru Signature Business Park to come up next to Kempegowda International Airport Limited (KIAL). Upgradation works of 248 MLD capacity sewage treatment plant at KC Valley at a cost of Rs 450 crore, said BSY

A multi-specialty hospital in North Bengaluru will be developed to provide services to poor and migrant workers. A sub-centre of Jayadeva Institute of Cardiology at KC General Hospital will be set up at a cost of Rs 20 crore, says CM B S Yediyurappa

State Mineral Policy 2021-26 to be formulated soon.

Also, KREDL (Karnataka Renewable Energy Development Limited)establish a 500 MW Solar Park on 1,551 acres at Firozabad, Kalaburagi through private developers.

Furthermore,Advanced Biotech Innovation Centre for Aqua-Marine will come up at Mangaluru, costing Rs 6 crore to develop biotech industries and innovative start-ups.

State to establish Venture Capital Fund of Rs 100 crore. And the government will provide Rs 25 crore share. Cybersecurity policy, Data Centre Policy on the anvil, says CM B S Yediyurappa

Research Park for quantum computing at a cost of Rs 10 crore.International Science Centre to be established at Rs 10 crore, added BSY

Two new townships coming soon on B'luru-Mumbai and B'luru-Chennai corridor

Chief Minister Mega Integrated Industrial Townships to come at Bengaluru-Mumbai and Bengaluru-Chennai industrial corridor in a minimum of 500-acre land. Investment of around 10,000 cr expected to be allocated to the townships in three years, BSY said

Industrial township at Peenya at Rs 100 crore. New slab for property tax for industries in urban areas.

Also,Bulk Drug Park at Kadechuru Industrial Area, Yadgir at a cost of Rs 1,478 crore with assistance from Centre, BYS added.

Rs 463 croreprovided as a grant for the Dharwad-Kittur-Belagavi line. The grant to cover 50% of the total project cost and complete cost of land acquisition, said BSY

Joint venture company of state government and Airport Authority of India announced to develop and commission government-owned airports.

A new Aerospace and Defence Policy will be announced soon, noted BSY

All mega projects costing above Rs 100 crore will be mandatorily evaluated. Drinking water and underground drainage projects by KUWSDB worth Rs 900 crore, said BSY

Water testing labs in 26 AMRUT (Atal Mission for Rejuvenation and Urban Transformation) cities at a cost of Rs 17 crore. To dispose of non-biodegradable waste, material recovery center of 10-tonne capacity at five city corporations. Project to cost Rs 11 crore, BSY added.

Government to modernise ITIs in the state with collaboration with Tata

Around 150 government ITIs (Industrial Training Institures)to be upgraded at a cost of Rs 4,636 crore to create the trained human resources.

Project in collaboration with TATA Technologies Limited. TATA to bear 88% of the cost and state 12 % equal to Rs 657 crore.

Various engineering divisions of RDPR (Rural Development and Panchayat Raj) to be merged into one to reduce administrative expenditure. Rs 1,500 crore grant will be provided for Kalyana Karnataka Development Board, said BSY.

Also,Rs 3,000 crore for the continuation of the special development plan for developing backward taluks, BSY added.

Fund allocation for SCSP/TSP down

Fund allocation for SCSP/TSP (Scheduled Castes Sub Plan/Tribal Sub Plan) downto Rs 26,005 crore due to the increasein the committed expenditure. Committed expenditure will grow from Rs 1.29 lakh cr in 2020-21 to Rs 1.42 lakh crore.

75% subsidy for sucking and jetting machines. Rs two cr grant for the purpose. Kolhapuri Footwear Cluster at Nippani, Belagavi district.

A total grant of Rs 500 cr for various development corporations of backward communities. And, there will anew board for the development of Vokkaligas.

Rs 1,500 crore allocated for the welfare of minority communities. Rs 200 cr for renovation/repair of churches, assistance to orphanages, and others.

Rs 20 crore for infrastructure facilities at Shravanabelagola.

Government to set up 25 mobile check-up centres for construction workers.

Construction Workers Welfare Board will construct four temporary residential facilities in Bengaluru Urban and rural districts, one each in Mysuru, Shivamogga, Hubballi, Kalaburagi, Ballari, Hassan and others, said BSY

More ICUs to come up in hospitals across Karnataka

ICUs of 25-bed and 6-bed capacities will be established in 19 districts and 100 taluk hospitals at a cost of Rs 60 crore in the next two years.

BSY said that the government will set up an Anti-microbial resistance unit for Rs one crore. Laboratories at Rs 10 crore to detect hereditary metabolic diseases at Bengaluru and Ballari, to reduce the infant mortality rate.

Rs two crore allocated for Tele-ICU facilities. Ayurvedic College in Shivamogga to be upgraded to Ayush University.

Regional cancer centres along the lines of Kidwai Hospital at Mysuru and Shivamogga at a cost of Rs 100 crore.

Funds allocated to develop 50 schools on lines of Kendriya Vidhyalaya model

Rs 100 crore to develop 50 schools under the Kendriya Vidyalaya model. Rs 100 cr for providing toilets constructed in schools and colleges, said BSY

Also, under a new 'Samarthya-Sarathya' programme, Rs five crore is allocated for trainingfive lakh students for competitive exams.

Grants for Kalasa-Banduri projects will be provided this fiscal, and all clearances to implement them will be obtained. Rs 5,600 crore will be provided to Krishna Bhagya Jala Nigama for irrigation works. Land acquisition hurdles for Yettinahole Project to be cleared, said CM BSY.

APMC to be computerised

(Agricultural Produce Market Committee) APMCs to be computerized at a cost of Rs 198 crore. Government to set up well-equipped flower market at a cost of Rs 50 cr at Byappanahalli. Dry chili market under PPP model by Ballari APMC.

CM announces to set up one gau-shala in each district.

To encourage ayurvedic medicine in veterinary science, a new research institute at a cost of Rs two cr at Veterinary College, Shivamogga.

Also,Rs 30 crore allocatedto set up fish sale units and Matysa Darshinis.

BSY allocates Rs 31,028 cr to Agriculture and allied sectors

To encourage organic farming, Rs 500 cr will be allocatedfor the benefit of food start-ups. Also, a new food park will come up in Vijayapura.

Karnataka government to increasereservation for farmers children from 40% to 50% inAgriculture University.

For small food processing units, government to increase subsidies to 50%. Rs 50 cr set aside. Horticulture Technology Park at Koppal district.

3,000Cr fund for reviving lakes andponds across Karnataka

Excellence center to help women who are subject to harassment and abuse. NIMHANS and NLSIU to be roped in, said CM BSY.

Women and Children's budget will be implemented under Panchayat Raj. Safe city project to be speeded up. 7,500 CCTV cameras in Bengaluru. Tech-based e-beat during night hours to ensure women's safety.

The market for products of women entrepreneurs in major cities of the state. Unique products of women to be exhibited for a week in the cities. E-market proposed

CM announces special women bus pass Vanitha Sangathi with rebate and also special loan up to Rs 2 crore with 4% interest rate to women entrepreneurs

No rise in taxes on Petrol and Diesel

In the budget 2021-22 Budget, no taxes including Karnataka State Tax on Petrol and Diesel has been increased and the budget has been formulated in a way so as not to increase the financial burden on the common man.

State revenues will not meet last year's budget targets. Will admit that there is an Imbalance in expenditure and revenue, says Yediyurappa.

Tax revenues of both state and Centre and down. As a result, the tax share of states has decreased. GST devolution funds for the year reduced by around 8,000 cr compared to budget estimates.

Handled natural disasters and pandemic efficiently, despite revenue shortage. Managed committed expenditures at the period of crisis without delaying payment of salaries and other expenses, says CM BSY

Due to lockdown, GSDP has declined. According to estimates, GSDP has dropped 2.6% compared to 2019-20 fiscal. Agricultural sector has grown 4%. Services and industry sector are down 3% and 5%.

Opposition leader Siddaramaiah leads walkout as CM Yediyurappa presents budget 2021

Leader of Opposition Siddaramaiah disrupts and stage walkout as CM Yediyurappa starts budget 2021-22 presentation.

Amid contraction in revenue, there will be few new welfare schemes

"As the committed expenditure is bound to surge this year, the announcement of new projects and allocating funds for them will be highly difficult," Finance department sources said to DH.

CM Yediyurappa reaches Vidhana Soudha

BS Yediyurappa, Chief Minister of Karnataka showing the briefcase before presenting thestate budget at Vidhana Soudha,Bengaluru. He is scheduled to attend the cabinet meeting before presenting the Budget 2021-22 at 12:05 pm.

CM B S Yediyurappa visits Sri Raghavendra Swamy Mutt ahead of Budget presentation

CM BS Yediyurappa seeks blessings atSri Raghavendra Swamy Mutt,Seshadripuram.

CM B S Yediyurappa leaves home for Vidhana Soudha to present the Budget 2021-22

While leaving the house, CM B S Yediyurappa, on the occasion of International Women's Day extended wishes to the fellow citizens. Also, he revealed that this year's budget has accommodated welfare schemes to encourage women entrepreneurs.

Prior to the budget presentation at 12:05 pm,CM Yediyurappa is slated to hold a cabinet meeting.

A budget like no other, Karnataka CM Yediyurappa has an unenviable task ahead

Dwindling revenues of the government and an increase in liabilities will be staring Yediyurappa in the face, which according to experts, will force him to focus on fiscal consolidation and rationalisation of expenditure. The first priority of the budget should be to bounce the economy back to 2019-20 levels.

Though the CM has promised that the budget will be “a good one,” all fiscal indicators point at the challenge to even reach this modest target set by him.

Kodagu district which was hit by natural calamities for the last few years is expecting bumper announcements in the state budget. The expectations of the people are high and they are eagerly waiting for Chief Minister B S Yediyurappa to announce some solutions to the problems faced by the people in the district.

The district had suffered from massive landslides and flood in 2018, causing extensive damages. The district never returned to normalcy since then. The coffee growers who are reeling under crisis are expecting a package, loan waiver, free electricity and waiver of electricity bills.

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.