The Karnataka government plans to borrow a whopping Rs 1.05 lakh crore next fiscal; the government also proposes to bring out eight new policies
Global Investors Meet will be organised in February 2025, to attract greater foreign investment.
New textile policy (2024-29) envisages a capital investment of Rs 10,000 crore and the creation of two lakh jobs.
Karnataka State Small Industries Development Corporation allocates Rs 39 crore for the development of industrial estates
Govt promises financial assistance to small and medium industries to issue IPO in the stock exchange.
Siddaramaiah conceptualise ‘Brand Bengaluru’ to improve the quality of life of people and attract investors
Bengaluru, NFAPost: Keeping his vision of ‘Karnataka Model’ development agenda, Chief Minister Siddaramaiah on Friday presented 2024/25 Budget with a focus on new infrastructure programmes and at the same time giving push for guarantee-based welfare and human development initiatives.
Chief Minister Siddaramaiah presented the 15th budget in his political carrier that is sized at Rs 3.71 lakh crore. It is his second consecutive budget with a revenue deficit, which is calculated at Rs 27,354 crore, up from the earlier Rs 13,951, the Chief Minister didn’t levied any new taxes.
It is also interesting to note that the state government is going ahead with its plan to borrow a whopping Rs 1.05 lakh crore next fiscal. This is primarily necessitated as Karnataka’s finances became precarious to find resources to fund its programmes promised during election time.
Chief Minister Siddaramaiah noted that the investment in 2023-24 was predominantly generated in sectors related to production of Lithium-Ion Batteries for electric vehicles, Electronic System Design and Manufacturing, automobiles and data centres among others.
“Global Investors Meet will be organised in February 2025, to attract greater foreign investment. Also, industrial estates in various districts set to be upgraded through the Karnataka State Small Industries Development Corporation with an estimated cost of Rs 39 crore,” said
Defending his development focussed budget which is presented by keeping an eye on the 2024 Lok Sabha elections, Siddaramaiah presented his bu, Karnataka Chief Minister Siddaramaiah said welfare schemes tend to increase” revenue deficit, but such expenditure is necessary to ensure that fruits of development reach the poorest of the poor.
“As the nation is adversely affected by steep price rise, unemployment and huge income disparities, it is the duty of the state to increase budgetary allocation towards welfare schemes which directly benefit the poor,” he said.
Karnataka government earmarked Rs 52,000 crore in the “hands of people during 2024-25” through five guarantees (Shakti, Gruhajyoti, Gruhalakshmi, Yuvanidhi and Annabhagya). During the current budget, the Chief Minister also added more schemes for the welfare of women SHGs, gig workers, and anganwadi workers. A sum of Rs 1,20,373 crore was allocated for various welfare programmes.
He also
made it clear that the budget presented is a revenue deficit budget, but the government has increased the budgetary allocation for welfare programmes to Rs 1.20 lakh crore and this will pave the way for creating a new Karnataka Model of Development.
“Though I have presented a revenue deficit Budget, I have increased the allocation for welfare programmes … I am confident of achieving a revenue surplus after two years,” said Chief Minister Siddaramaiah.
Making his political stand clear during an over three-hour-long speech, Siddaramaiah made a comparison with the current BJP-led Union government and the UPA government which had taken up people-centric schemes and laws.
“However, the anti-people decisions of the central government for the last 10 years has led to alarming developments such as widening inequality, concentration of wealth in few hands and crony capitalism,” said Karnataka Chief Minister Siddaramaiah.
Through a new textile policy (2024-29) for the development of textile and weaving sectors, the government is eyeing a capital investment of Rs 10,000 crore and the creation of two lakh jobs. New textile parks will be constructed in Kittur Karnataka, Kalyana Karnataka (Raichur) and Mysuru regions under a public private partnership model. These parks are expected to create about 10,000 jobs. A Rs-50 crore grant will be provided for the supplemental infrastructure at the 1,000-acre textile park coming up in Kalaburagi district, in collaboration with the central government.
Chief Minister Siddaramaiah criticised the Centre for its unscientific implementation of GST, which resulted in a a staggering loss of Rs 59,000 crore for the state.
“Loss of ₹59,274 Crore was incurred by Karnataka due to unscientific implementation of GST in last 7 years. During 6 years of 15th Finance Commission, loss to Karnataka under devolution of Central taxes is estimated to be ₹62,098 crore” said Chief Minister Siddaramaiah.
Out of the anticipated GST revenue, Chief Minister Siddaramaiah pointed out that only Rs 3,26,764 crore was amassed. In response to the GST deficit of Rs 1,65,532 crore, Siddaramaiah said the Central government disbursed Rs 1,06,258 crore as compensation to the state. Consequently, he said the state suffered a loss of Rs 59,274 crore due to the unscientific execution of GST over the past seven years.
The government will provide assistance to small and medium industries to issue IPO in the stock exchange. Financial assistance of up to 50% of the cost will be provided, subject to a maximum of Rs 25 lakh.
On the PM Awaas Yojana, Karnataka CM said that the scheme has slowed down in the state as most of the beneficiaries could not afford to pay their contribution of Rs 5 lakh. The Congress-ruled Karnataka government has aimed to complete 3 lakh houses in 2024-25.
“Our Government has therefore decided to limit the contribution to be paid by the beneficiaries to one lakh rupees. The remaining beneficiary share of approximately ₹4 lakh will be provided by the Government,” CM Siddaramaiah said.
The government has conceptualised ‘Brand Bengaluru’ to improve the quality of life of people and attract investors to develop the state capital into a world-class city, he said, adding that major reforms in various sectors have been introduced.
For Bengaluru, some of the infrastructure initiatives in the Budget were the repositioning of the peripheral ring road as Bengaluru Business Corridor to decongest traffic to be developed at a cost of Rs 27,000 crore on PPP model, a 250-metre-high Skydeck in the city, and permitting shops and establishments to remain open till 1 am in Bengaluru and 10 other city corporations to boost trade and commerce.
In addition, captive solar parks will be established in various institutions under the Urban Development Department such as Bruhat Bengaluru Mahanagara Palike, Bangalore Metro Rail Corporation Limited, Bangalore Water Supply and Sewerage Board and Bangalore Development Authority, the Chief Minister said.
The Budget also proposed to bring out eight new policies and they are: Skill Policy, Gram Panchayat-SHG Convergence Policy, Green Hydrogen Policy, Industrial Policy, Textile Policy, Global Capability Centres Policy, AVGC-XR Policy, and Tourism Policy.
It is proposed to implement schemes to the tune of Rs 5,000 crore under the Kalyana Karnataka Region Development Board to emphasise infrastructure development during the year 2024-25.
As per the budget proposal, Rs 300 crore will be allotted for developing and improving Anganwadi centres across the state. The Siddaramaiah-led government in Karnataka has decided to allot large chunks of this year’s budget to the welfare of women and children, at Rs 86,423 crore and Rs 54,617 crore, respectively.
The Congress government in the state has also proposed that under the Anna-Suvidha ration programme senior citizens above the age of 80 years will also receive food grains at their doorstep. It was previously implemented on a pilot basis for people aged 90 years and above. Further, Rs 1000 incentive was announced to be given to caretakers of people suffering from Cerebral Palsy, Muscular Dsytrophy, Parkinsons and Multiple Sclerosis.
The Karnataka chief minister announced that 50 women-run cafes, called Cafe Sanjeevini, will be launched across the state during this year at a cost of Rs 7.50 crore. “These canteens will cater to the demand and supply gap in rural areas for healthy, hygienic and affordable cooked food and traditional local cuisine,” said Siddaramaiah.
Further, it was announced that in collaboration with the Coffee Board, one lakh women members of SHGs will be trained as coffee entrepreneurs and 2,500 coffee kiosks managed exclusively by SHG women will be set up at a cost of Rs 25 crore. Another major proposal is to develop 50,000 women SHG owned micro-enterprises in the next two years.
Siddaramaiah also mentioned that Savitribai Phule Women Empowerment Programme will be initiated in 100 select Gram Panchayats of the State to provide vocational skill training consistent with women’s aspirations and interests. Moreover, cold press oil units will be established in all the Gram Panchayats of the state through the self help groups with financial assistance of Rs.1 lakh each.
Underlining the government’s focus on improving the learning outcomes among school children, the Siddaramaiah government announced two programmes – Ganitha-Ganaka programme and Marusinchana Programme.
Under the Ganitha-Ganaka programme, the Karnataka government will collaborate with J-PAL Institute for students studying in 3rd to 5th standards. “The purpose of this programme is to make children like and learn mathematics,” Siddaramaiah said. The proposed Marusinchana Programme will be taken up at a cost of Rs 10 crore to improve the learning ability of students of 6th and 7th standard who are lagging behind.
