Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Mar 13: The state is at a critical juncture in which finances are under extreme pressure because of a number of populist schemes announced by the state government. As the panchayat elections are round the corner, the chief minister, Siddaramaiah, who also happens to hold finance department, will be under pressure to come out with more sops.

The financial condition of the government is precarious because of the curtailed grant size from the central government. It would be interesting to see whether the CM will concentrate on reaping immediate benefits, or come up with far-sighted measures which will be aimed at achieving overall development of the state in the long run.

For Siddaramaiah, this budget, being presented at 12.30 pm today, will be third as the chief minister, and tenth overall. He has set a record of sorts, as the next highest presenter of budgets in Karnataka happens to be Ramakrishna Hegde with six budgets to his credit. Siddu might be compelled to take some hard decisions. There are expectations however, that he will give boost to existing populist schemes like extension of 'Anna Bhagya' scheme to APL cardholders, shoes for students studying in government schools, establishments of clean water units in urban areas facing water scarcity etc.

The chief minister is also likely to stabilize the priority sectors by laying emphasis on infrastructure. If this sector gains importance, departments like agriculture, health,urban development, rural development, industries, and energy may get additional grants.

Experts feel that as usual, the chief minister might seek to levy additional taxes on liquor, tobacco products, luxury goods, high cost electronics equipment, star hotels etc to augment resources needed to finance increased size of the budgettary expenditure.