Karnataka Chief Minister Jagadish Shettar on Friday presented a revenue-surplus Budget for 2013-14, which proposes to reduce value added tax (VAT) on several products consumed by the common man. Last year, the government had raised VAT rates by 50 basis points across various slabs, to generate additional revenue to fund a loan waiver programme for drought-affected farmers.
Shettar, who also holds the finance portfolio, has proposed to revise the 17 slabs of declared prices relating to Indian-made liquor, by increasing each of these by Rs 40.
He has projected a revenue surplus of Rs 585 crore, which is 38 per cent lower than the revised estimates for the current financial year (FY13). Karnataka has had revenue surplus since 2008-09.
The state’s fiscal deficit is expected to be Rs 16,714 crore, which is 2.8 per cent of the gross state domestic product (GSDP). Total liabilities at Rs 1,34,472 crore at the end of FY14 are estimated to be 22.35 per cent of GSDP. This is within the 25.2 per cent limit of the Karnataka Fiscal Responsibility Act for 2013-14.
“All these three fiscal parameters are within the mandate of the Karnataka Fiscal Responsibility Act and reflects the fiscal discipline of the state,” Shettar said in his Budget speech.
The chief minister said: “This is the last year of the unprecedented people’s mandate given to our party (Bharatiya Janata Party). The financial position of the state is sound and robust. During the last five years, this government has improved tax/GSDP ratio to about 10 per cent.”
Continuing in the path of his predecessors, D V Sadananda Gowda and B S Yeddyurappa, the chief minister presented agriculture Budget separately. The overall size of the Budget for 2013-14 has increased by 13.88 per cent to touch Rs 1,17,005 crore, compared to the Budget for 2012-13.
In the Budget, the state’s Plan size has swelled 10.5 per cent at Rs 46,450 crore, compared to Rs 42,030 crore for 2012-13. The total receipts are estimated to be Rs 1,15,983 crore during 2013-14, with revenue receipts of Rs 94,216 crore and capital receipts including borrowing of Rs 21,767 crore. The total expenditure is estimated to be Rs 1,17,005 crore consisting of revenue expenditure of Rs 93,631 crore and capital expenditure of Rs 23,374 crore.
