Karnataka Budget: Spare the common man more burden is BS Yediyurappa's mantra
To boost the real estate sector, he proposed a reduction in the stamp duty to 3% on sales of apartments and houses valued between Rs 35 lakh and Rs 45 lakh
Karnataka Chief Minister BS Yediyurappa on March 8 presented the state’s budget proposals for 2020-21 with the focus being not increasing the burden on the common man.
“I am not willing to put the burden of additional taxes on the common people. State government levies Karnataka Sales Tax on petrol and diesel. This is already lesser compared to other southern states. Despite this, in the 2021-22 budget, no taxes including Karnataka State Tax on petrol and diesel have been increased and budget has been formulated in such a way so as not to increase the financial burden on the common man,” the chief minister said while presenting the budget.
The gross domestic product of Karnataka dropped 2.6% in the current year compared to the previous fiscal due to the pandemic, revealed the chief minister, adding that the revenue collections will not meet the budget estimates.
The government spent Rs 5,372 crore for tackling the pandemic, said the chief minister. More than 9 crore RT-PCR test were conducted in the state.
Yediyurappa also said that Rs 3,000 crore has been allocated for special development plan for backward taluks in the state.
He also announced that mega integrated industrial townships would be developed along Bengaluru-Mumbai and Bengaluru-Chennai industrial corridor on plots of land that are of minimum 500 acres. In the next three years, investment of around Rs 10,000 crore is expected said the chief minister.
To give a push to entrepreneurship, the government will set up a venture capital fund of Rs 100 crore and the state will chip in with one-fourth the amount.
|The budget proposed to allocate Rs 31,028 crore for agriculture and allied sectors. An industrial park for food start-ups will be set up in Vijayapura and Rs 500 crore would be allocated for the project.
For small food processing units with an investment of Rs 50 crore, the government raised subsidy to 50%.
Around Rs 5,600 crore would be allocated for improving irrigation facilities in the state.
The APMCs will be digitised, said the chief minister. A flower market would be set up at Byappanahalli.
Apart from the overarching objective of not adding to the burden of the common man, the budget had a few remarkable elements.
A gaushala will be set up in each of the 31 districts of the state with the target of preventing cow slaughter. A research institute will be set up at veterinary college in Shivamogga to encourage exploration of ayurvedic medicine in veterinary science.
For the women working in garment factories, the chief minister announced discounted bus passes and allocated Rs 30 crore towards that end.
Women entrepreneurs in the service sector would be eligible for loans up to Rs 2 crore at an interest rate of 4%.
To help women who are victims of abuse and harassment centres of excellence would be set up in the state with help from NIMHANS and National Law School of India University.
The Chief Minister announced that the government will allocate Rs 100 crore to develop 50 schools under the Kendriya Vidyalaya model.
An equal amount has been earmarked for building toilets in schools and colleges.
|The new healthcare initiatives announced included setiing up of cancer treatment units in Mysuru and Shivamogga.
Moreover, intensive care units of 25-bed and 6-bed capacities will be set up in 19 districts and 100 taluk hospitals respectively. The job will be completed in two years and Rs 60 crore has been allotted for the purpose.
To boost the real estate sector, the chief minister proposed a reduction in the stamp duty to 3% on sales of apartments and houses valued between Rs 35 lakh and Rs 45 lakh.
Industry captains felt its impact would be rather limited since the reduction has been confined to this one sector.
“Bengaluru presently has total unsold stock of nearly 59,350 units across all budget segments. Of this, just 24% is within the Rs 45 lakh price bracket, while 64% is within Rs 45 lakh to Rs 1.5 crore budget range…. the cut within INR 35 lakh to Rs 45 lakh budget may not have a significant impact,” said ANAROCK Property Consultants chairman Anuj Puri.
The stamp duty for other price segments remained unchanged at nearly 5%.