The Karnataka government’s financial status has remained sound during the present fiscal following higher collection of revenue receipts and taxes, governor H R Bhardwaj said on Monday.
In his address to the joint session of the state legislature, Bhardwaj informed the members that revenue growth was 20 per cent, coupled with over 15 per cent growth in plan expenditure this year.
“The state has also continuously maintained a revenue surplus in the last four years. The borrowings of the state are within the permissible fiscal prudence norms. My government is confident of achieving the approved Plan size for 2011-12 in full measure,” he said.
Though he did not mention the exact revenue figures in his speech, the government website shows that the total revenue receipts rose 21.3 per cent to Rs 47,318 crore for the first nine months of the fiscal ended December 2011 compared to Rs 38,994 crore in the year ago period.
The state’s own tax revenues were up by 21.4 per cent to Rs 33,032 crore for the nine months ended December 2011 compared to the corresponding period last year. Own taxes include commercial taxes, excise, motor vehicle tax and stamps and registration.
The year on year growth in plan expenditure was 15.3 per cent at Rs 16,755 crore as on December 2011. This is 48.4 per cent of the budget estimates of Rs 34,644 crore.
“The slowdown of global economy and the moderation of growth of the country as a whole, this year has thrown up challenges to the state economy. Even in such a scenario, Karnataka state has managed to maintain a very healthy tax revenue growth,” Bhardwaj said.
He said Karnataka was not fortunate enough to get adequate rain during the kharif season of 2011 and witnessed conditions of drought in September 2011. The highest deficiency of up to 24 per cent of r ainfall in the month of September was the worst ever in the last 40 years. This has affected large tracts of land leading to low crop yields. The state was however quick to respond to this situation and declared 99 taluks of 23 districts as “drought affected” and took immediate measures, he said.
The State has also submitted a memorandum to the government of India seeking central assistance of Rs 723 crore, he said.
Referring to the successful conduct of global investors meet in 2010 and global agri business investment meet in December 2011, the governor said, “My government is planning to hold the next global investors meet on June 7 and 8, 2012. The aim is to generate one million jobs by attracting large scale investments across various sectors and to improve the state’s GDP level.”
He said Karnataka has initiated different measures to conserve natural resources and its sustainable development. “In order to curb illegal mining and transportation of iron ore, my government has framed separate rules. To prevent illegal sand mining, the New Sand Policy 2011 has been implemented. E-Permit system has been implemented for the first time for all major minerals in the state,” he added.
