Business Wire IndiaThe latest budget of Karnataka has an outlay of ₹ 1,63,419 Crore for the financial year 2016-17, providing major boost to Agriculture, Education, Rural & Urban Development and infrastructure sectors. The fiscal deficit is expected to be ₹ 25,657 crore, which has been well controlled and at 2.12 per cent of GSDP.
- A series of reforms/allocations towards agriculture and allied sector like abolishing agriculture income tax, allocation of ₹ 14,477 crores for development of water resources, ₹ 4034 Crore for Agriculture sector, ₹ 1886 for Animal Husbandry and ₹ 753 Crore for Horticulture sector, Development of 100 model agricultural villages under the “Suvarna Krishi Grama” programme is a welcome proposal towards development of agriculture sector.
- A budgetary allocation of ₹ 4,344 Crore has been made for Agricultural department and Agri-clinic would setup in collaboration with IIM-B and GKVK agricultural university through PPP model.
- ₹ 3,500 crore allocated for development of State Highways and upgrading of Major District Roads.
- In 2016-17, a total outlay of ₹ 14,853 Crore is provided to Urban Development Department. Of this, ₹ 6,044 crore is for works related to Bengaluru.
- Water Supply and Underground Drainage Project for 110 Villages coming under BBMP at a cost of ₹ 5,018 Crore.
- In 2016-17, a total outlay of ₹ 12,632 Crore is provided to Energy Department. Provided the power crisis in the state, this is a good move.
- During 2016-17, a total amount of ₹ 17,373 Crore is provided to Primary and Secondary Education Department.
- Allocation for development of rural roads increased to ₹ 3,609 crore.
- In 2016-17, a total amount of ₹ 1814 Crore is allocated to Commerce and Industries Department.
- A total amount of ₹ 222 Crore is allocated to IT, BT and S&T Department.
- During 2016-17, ₹ 5,032 Crore is provided for Department of Health and Family Welfare.
- During 2016-17, a total amount of ₹ 4,651 Crore is provided to Higher Education Department.
- Waiver of full interest on all types of agricultural loans availed from various co-operative institutions which are overdue as on 30-09-2015 if the farmers pay the principal amount within 31-03-2016. While the budget implication is not high, the credit discipline in rural areas may get affected.