Yeddy’s target: Raising Karnataka’s budget size to Rs 1,00,000 cr in next 3 years
From Our Special Correspondent
Daijiworld Media Network
Bangalore, Mar 18: Enhancing Karnataka’s annual budget size to a whopping Rs 1,00,000 crore in the next three years, which also marks the end of the five-year term of the first-ever full-fledged BJP government is the self-imposed target of Chief Minister B S Yeddyurappa.
Replying to the debate on the state’s budget proposals in the legislative assembly, the chief minister, on Thursday said the government would make every possible effort to increase the state’s total budget outlay to the magic figure of Rs one lakh crore in the next three years. The government has already increased the state’s total budget outlay from Rs 60,051 crore in 2009-10 to Rs 70,063 crore in the ensuing financial year of 2010-11,
The first and formemost priority of the government will be fully implement the state’s budget proposals for the year 2010-11 and step up efforts to mobilise the necessary resources by curbing leakages and increasing non-tax revenues, said Yeddyurappa, who is also holding the finance portfolio.
Though financial meltdown and recession had hit the global economy during the last two years and the entire country and all states had suffered with resource mobilization falling far below the target in Karnataka, the chief minister said the state was able to achieve 6% growth in revenue collection. The financial deficit was contained within the limits prescribed by the Centre earning laurels for the prudent fiscal management by the state from the Central Planning Commission, 13th Finance Commission and also the Reserve Bank of India, he said.
Funds would be earmarked for all the budget schemes and priority would be given to address power and drinking water problems, accelerate agricultural growth rate, and expediting construction of houses in flood ravaged 15 districts of north Karnataka, he said adding: The government’s most ambitious housing programme, Asare (Shelter), to provide housing for the flood affected people of 50 villages would be launched on March 21.
Pointing out that the worst-ever floods that caused widespread devastation to the tune of Rs 18,568 crore, he said the state government has already released Rs 1,878 crore, including the grants from the Centre, for the relief and rehabilitation of the affrected people and as much as Rs 1,500 crore had already been spent. The Centre is expected to provide financial assistance to the tune of Rs 7,047.34 crore.
To achieve the target of 9% GSDP growth in the 11th five-year plan, the farm growth rate has to be increased to 4% of the GSDP by effective delivery of inputs and increasing area under
irrigation. There has been decline in the production of foodgrains and oilseeds in recent years on account of droughts and floods.
The chief minister said outlays have been increased substantially for agriculture (Rs 1849 crore), horticulture (Rs 245 crore), animal husbandry (Rs 846 crore) and irrigation (Rs 5180 crore).
Asserting that the government was committed to increasing the state’s power generating capacity by at least 5,000 MW in the next three years, he said the installed capacity was increased by 1,252 MW during 2008-09 and another 1,300 MW during 2009-10.
Responding to the allegations made by the Opposition against the Government on the Bangalore-Mysore Infrastructure Corridor (BMIC) project being impelemented by the Nandi Infrastructure Corridor Enterprise Ltd (NICE), he said the Government would provide land to the developer as per the Framework Agreement. ``Not a gunta of land in excess of 20,193 acres as stipulated under the original framework agreement would be given to BMIC.,’’ he declared and said the government was keen to have a full-day debate on the issue in the state legislature.
The State’s total outstanding debt would be Rs 82,513 crore by the end of this fiscal year and this included borrowings from Centre, market, NABARD, Life Insurance Corporation of India, HUDCO, and other financial institutions. The total debt of the State increased from Rs 44,345 crore in March
2005 to Rs 71,410 crore in March 2009, he said.
Drawing comparison of borrowing among the major states, Yeddyurappa said Karnataka’s borrowings stood at Rs 76,762 crore (26 % of GSDP) in 2009-10 against Rs 1,27,581 crore (31.3 %) in Andhra Pradesh, Rs 1,25,759 crore (29.7%) in Gujarat, Rs 95,232 crore (24.1%) in Tamil Nadu, 2,07,810 crore (26%) in Maharashtra, Rs 70,761 in Kerala (35 %), Rs. 90,972 crore (43.1 %) in Rajasthan, and Rs 1,68,684 crore (42.9 %) in West Bengal. These outstanding do not include borrowings of broads and corporations of respective states.
The repayment of the State in 2009-10 stood at Rs 8,497 crore and it was expected to repay Rs 9,905 crore in 2010-11. Despite the economic slowdown, the state had recorded 6% growth rate in revenue collection.
The state’s plan size had been fixed at Rs 31,050 crore in 2010-11.
To generate more employment and alleviate poverty, the chief minister said a Global Investors’ Meet would be held on June 3-4 in Bangalore. A large number of multinational corporations have expressed their keenness to invest in the State. As of January this year, the State had attracted investment of Rs 1.38 lakh crore in 38 projects, he added.