Dr.Thomas (Special Correspondent)
Chief Minister Basavaraj Bommai said the State budget for years 2023-24 is based on reality and aimed at people’s welfare and economic stability.
It had been prepared within the financial limitations and managed only the useful expenditure to accelerate the state’s economic growth.
Replying on the state budget in the State Legislative Assembly here on Thursday,he said the meaning of budget is knowing the state’s financial position and planning schemes to respond to the people’s aspirations.It will indicate financial management.
The revenue will increase if the state’s economic position is good.
16 percent hike in budget size shows the state’s economic progress
The CM said the government had expected a fiscal deficit of Rs 14,699 crore in 2022-23 but it was brought down to Rs 5996 crore by January. The revenue surplus is expected in FY 2023-24.
The State has shown discipline in fiscal management. The increase in revenue a day after the Covid-19 pandemic shows Karnataka’s economic power.
This time, the budget size has been Rs 3,09,182 crore which is 16 percent more than the previous year’s budget.This will indicate the speed of the economic growth of the state.
Rs.402 crore revenue surplus, an indication of fiscal management
The CM said they have a target to increase the State’s share in the central taxes to Rs 37,252 crore (a hike of 25 percent target).
The grants to the state have increased from the Government of India including Direct Benefit Transfer. Achieving Rs.402 crore revenue surplus in the year 2023-24 shows the fiscal management.The states of Rajasthan and Kerala have shown revenue deficits.
Loan for capital expenditures
He said the rules say the state’s borrowing must be within 25 percent of the SGDP and following this rule helped present a revenue surplus budget.
It is not correct to compare the economy pre-Covid and post-covid times.The economic crisis gripped during the Covid pandemic and despite the borrowing opportunity, it was capped at Rs.67,000 crore.The same has been used for capital expenditures.
Not true
He said in the last 65 years, the state has borrowed Rs 1,30,000 crore but the State under Chief Minister Siddaramaiah had borrowed Rs.1.30 lakh crore just in five years.
In terms of percentage, the Siddaramaiah
government had taken 82 percent loan whereas the incumbent government has just utilized 71 percent.
There was an opportunity to borrow up to a five percent loan from the Government of India but the state’s borrowing did not cross even three percent.
So,the allegation that the borrowing was more during the last four years was far from the truth.
