Karnataka budget: Excise duty on liquor hiked by 20 pc, guidance value, motor vehicle tax to go up

BENGALURU: Faced with the task of raising resources for the Congress guarantees, Chief Minister Siddaramaiah on Friday presented a deficit budget of about Rs, 3,000 crore with a rise in taxes. The budget outlay too has been increased from Rs 3.09 lakh crore to Rs 3,27,747 crore. This is the first budget of the new Congress government and the 14th presented by Siddaramaiah.

The budget proposes to increase excise duty by 20 per cent on all Indian made liquor (IML) and aims to generate Rs 36,000 crore. As regards beer, it has been raised by 10 per cent from 175 per cent to 185 per cent.

Also, the government hopes to raise Rs 9,000 crore from the Mines and Geology Department. The government has also proposed to raise guidance value to raise Rs 25,000 crore and motor vehicle taxes from which it expects to raise Rs 11,500 crore. The Commercial Taxes Department has been given a target of collecting Rs 1.01,000 crore.

The total receipts have been pegged at Rs 2,38,410 crore while the the state’s share of central taxes will account for Rs 37,252 crore and central grants of Rs 13,005 crore have been estimated.

Chief Minister Siddaramaiah reading out the budget speech in the Assembly on Friday.

The budget has also allocated Rs 4,000 crore annually for the Shakti free bus travel scheme for women, Rs 13,910 crore for the Gruha Jyothi scheme Rs 10,000 crore for the Anna Bhagya scheme which will benefit 4.42 lakh beneficiaries, and Rs 4,000 crore for the Gruha Lakshmi scheme.

The government has allocated Rs 60 crore for scholarships to minority community students studying in classes 1 to 8 and loans of Rs 1 lakh annually at 2 per cent interest for higher education. The tasdik funds for non-Hindu religious institutions has been increased from Rs 48,000 to Rs 60,000. Also, Rs 360 crore has been allocated for development of minority colonies and Rs 50 crore set aside for protection of 40,000 Haj properties.

It is planned to construct 126 Shaadi Mahals and community halls at a cost of Rs 54 crore and minority students studying abroad will be entitled to interest-free loans of Rs 20 lakh. The Haj bhavans will also impart training for IAS, IPS aspirants while Rs 8 crore has been set aside for two-year training for NEET and JEE. Under the Swavalambhi Sarathi scheme, unemployed minority candidates will get aid of Rs 3 lakh to purchase vehicles.

The budget also proposes a Chamundi temple development authority and a historical museum at the Chamundi grounds in Mysuru. A Film City has also been proposed in Mysuru with private participation. Funds of Rs 25 crore have been earmarked for the development of Jain pilgrim centres. The government also proposes to set up a Christian development corporation with a grant of Rs 100 crore.

Chief Minister Siddaramaiah being congratulated by his cabinet colleagues after presenting the budget.

The government has announced setting up of a new medical college in Kanakapura, the Assembly segment represented by Deputy Chief Minister K Shivakumar. All district hospitals will have 15 CT scan units and six MRI scan units with private participation. Grants of Rs 6 crore have been earmarked for setting up AED centres in all district hospitals to detect heart diseases in the memory of Puneeth Rajkumar.

The government also plans to build a museum related to the Kannada film industry near the Dr Rajkumar memorial. Quality Kannada movies will be encouraged with financial assistance.

The government has announced setting up of a new medical college in Kanakapura, the Assembly segment represented by Deputy Chief Minister K Shivakumar. All district hospitals will have 15 CT scan units and six MRI scan units with private participation. Grants of Rs 6 crore have been earmarked for setting up AED centres in all district hospitals to detect heart diseases in the memory of Puneeth Rajkumar.

Bengaluru gets Rs 12,000 crore boost

In a further push for Metro connectivity, the coverage will be increased by 27 km between Baiyappanahalli and KR Puram, Kengeri to Challaghatta, Nagasandra to Madawara, RV Road to Bommasandra and will be completed by 2024. The Airport Metro line will also start functioning from 2026.

Funds of Rs 1,000 crore have also been earmarked for the suburban rail project and approval has been granted for the Peripheral Ring Road (PRR). Flyover projects have been allocated Rs 263 crore.

Also 12 major high-density corridors, running up to 83 km will be developed at a cost of Rs 273 crore. Funds of Rs 1,411 crore have been allocated for setting up 20 sewage treatments plants (STPs) in the BBMP limits. White-topping of arterial roads, covering a length of 100 km will also be taken up at a cost of Rs 800 crore. The government also assured that all encroachments on rajakaluves will be removed.

Chief Minister Siddaramaiah and his cabinet colleagues pose for a photograph after the budget presentation in the Assembly.

Other proposals

Short-term loans for farmers has been increased from Rs 3 lakh to Rs 5 lakh and from Rs 10 lakh to Rs 15 lakh with 3 per cent interest. For fishermen, the limit for interest-free loans has been increased from Rs 50,000 to Rs 2 lakh.

The government also plans to get a detailed project report (DPR) done for the Mekedatu drinking water project and begin the process of land acquisition. The budget has also allocated Rs 12,912 crore for the Yettinahole project.

It is also proposed to set up two driving training schools exclusively for women at Ramanagara and Bidadi at a cost of Rs 5 crore each. The monthly pension for journalists has also been hiked from Rs 10,000 to Rs 12,000.

The police department has been given a grant of Rs 100 crore to replace old vehicles and Rs 450 crore for police housing. Also, Rs 20 crore has been set aside for strengthening police training schools. To enhance facilities to produce jail inmates before courts through video conference, Rs 3 crore has been allotted while the Prison Academy has been allocated Rs 5 crore.

The government also plans to reverse the changes made to school textbooks. The grants for the maintenance of primary and high schools has been increased from Rs 20,000 to Rs 45,000 each while Rs 153 crore has been set aside for upkeep of schools and PU colleges. It is also proposed to start 10 more Morarji Desai residential schools for minorities.

Read the full Budget document here:

2_BudgetHighlights2023-24Final(July)