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Karnataka Budget Highlights [2009 - 2010]

OVERVIEW OF BUDGET 2009-10 (Rs. in Crores)

  • Total estimate : 58031.36
  • Revenue receipts : 48389.04
  • Capital receipts : 9642.32
  • Revenue expenditure : 47237.67
  • Capital expenditure : 10879.57
  • Plan estimate : 29500.00
  • Government Undertakings and Local Bodies expected to raise Rs. 6,604 Crore through internal sources and loans.
  • Fiscal deficit limit has been increased in the year 2008-09 from 3% to 3.5% under Fiscal Responsibility Act.

Priority sectors

  • Emphasis on Agriculture and allied activities, Rural Development, Water resources, Power, Roads, Urban development and Education.
  • Rs.2, 440 Crore has been earmarked for Agriculture and allied activities.
  • Rs.3, 063 Crore earmarked for Rural Development.
  • Rs.4, 714 Crore provided for Irrigation works.
  • Budget provision has been enhanced to Rs.6, 107 Crore for Power Sector, both in plan and non-plan.
  • Rs.1, 327 Crore earmarked for transport sector.
  • Rs.7, 376 Crore (approx.) for Urban Development including Bangalore city.
  • Rs.8, 888 Crore will be spent for education sector.

Agriculture related activities

  • Subsidy of Rs.250 crores for Agricultural loans, at 3% interest from nationalised and commercial banks including cooperative institutions.
  • Increase of revolving fund from Rs.500 crores to Rs.750 crores for providing support price to agricultural products.
  • Support price for organic farming increased from Rs.100 crores to Rs.200 crores.
  • Rs.150 crore subsidy to farmers for getting loan from cooperative institutions at 3% interest.
  • Financial assistance of Rs.20 crore each, to the Agricultural University, Raichur and Horticulture University, Bagalkot.
  • Opportunity is created for 1,000 farmers to undertake study tour in foreign countries, to encourage them to learn modern scientific techniques of farming.
  • Establishment of horticultural produce market at Belgaum, at an expenditure of Rs.100 crores with private participation under National Horticulture Mission.
  • Rs.10 crores for construction of turmeric market, agricultural produces processing unit and cold storage at Chamarajnagar
  • Rs.5 crore for establishment of a new Horticulture College at Kolar
  • Subsidy of Rs.2100 crores for electrification of pumpsets used in agriculture.

Water Resources and Irrigation

  • Increase in budget provision for irrigation projects to Rs.4,714 Crore.
  • Rs.500 Crore for Upper Bhadra Project.
  • 63,000 hectares land will get irrigation facilities this year.
  • Rs.2193 Crores for implementation of Chimmalagi Lift Irrigation Project in Bijapur District.
  • Rs.120 Crores provided for the second phase of Guthi Basavanna Lift Irrigation Project in Bijapur.
  • Special efforts for comprehensive survey and rejuvenation of all water bodies and tanks with the help of ISRO and KSRAC. Rs.764 Crore additional budget has been provided to Department of Minor Irrigation and RDPR for this purpose.

Rural Development

  • Rs. 300 Crore will be provided for development of 1,200 villages under the Suvarna Gramodaya Programme during I phase.
  • Rs.325 Crore spent during 2008-09 for laying of 1,124 km roads. Under Prime Minister's Gram Sadak Yojana 7,880 km of roads were laid so far.
  • Rs.800 Crore has been provided to develop 2,500 km rural roads.
  • A project of Rs.5000 Crores with private partnership under annuity payment basis has been planned for providing roads in rural areas.
  • 500-foot bridges and hanging bridges will be constructed in the hilly and forest areas of Malnad region. Rs.25 Crores has been earmarked for this.

Urban Development

  • Rs.3, 000 crore earmarked for development of Bangalore city.
  • Excluding the city municipalities, special grant in aid of Rs.15 crores, to every other municipality in district centres and cities. Rs.5 crores to every municipality in taluks and small towns and Rs.2 crores special grant to every town panchayath.
  • Rs.1000 crores from the Bangalore Development Authority to Bangalore Mahanagar Palike for development of basic infrastructure and developmental works by Bruhat Bangalore Mahanagara Palike at a cost of Rs. 500 crores.
  • Implementation of a special programme of Rs.2000/- crores, for upgradation of important roads in the Bruhat Bangalore area, with private partnership to maintain them.
  • Rs.600 crores to increase the supply of drinking water in Bangalore.
  • Rs.100 crore will be provided to recycle underground drainage water leading to tanks.
  • Rs.600 crores as State Government contribution to the Metro Rail Corporation.
  • Rs.500 crores to start a luxury bus service, with a minimum fleet of 1000 deluxe buses.
  • Providing ring roads to Belgaum and Bellary cities with private participation. Rs.120 Crore will be provided for improving underground drainage in Belgaum.
  • 10,000 homes will be constructed for people living in slums.

Infrastructure Development

  • Rs.500 crores capital grant to KRDCL for instituting Karnataka road fund for executing 10,000 kms of State highways and important roads and 12,600 kms roads in rural areas, with private participation.
  • Rs.380 crores for development of 3400 kms of Highways under Karnataka State Highway Development Project-2, with the assistance of World Bank.
  • Maintenance of important district roads, at a cost of Rs.400 crores under Chief Minister's Rural Road Development scheme and roads and bridges under NABARD assistance at a cost of Rs.230 crores.

Extension of Railway Network

  • State Government will provide 50% share for laying new railway lines, between Belgaum-Dharwad, Kuduchi-Bagalkot, Gadag-Haveri and Almatti-Koppal.
  • KSIIDC to implement super fast train to Bangalore International Airport in PPP model.

Development of Ports

  • Setting up of a "Karnataka Maritime Board", for the development of Ports. Rs.100 Crore is provided for construction of good ports in the Western Coastal regions of Karwar, Thadhadi, Honnavar, Malpe and Old Mangalore under PPP Model.
  • Rs.10 Crore provided for dredging of Karwar Port.

Airports

  • Rs.100 Crore provided for construction of Airports in the cities of Gulbarga, Bijapur, Shimoga, Hubli, Bellary and Mysore.

Schemes for Power Generation

  • Infrastructure to be provided for establishment of new power plant with capacity of generating 1015 MW at Udupi. New power plant to be established in Hidkal and Gulbarga.
  • Increase in the share capital by Rs.500 crores, in Karnataka Power Corporation Ltd. to undertake projects in the public and joint sector.
  • Extending the "Niranthara Jyothi" Scheme already initiated in Malur, to other backward taluks in a phaced manner.
  • Providing electricity to all hutments and thandas of the State. Rs.100 Crores will be spent under the "Ganga Kalyan" Scheme for electrification of 10,000 irrigation pumpsets for families below poverty line.

Social Welfare

  • Hike in pooled fund for housing, educational facility etc of scheduled caste and scheduled tribe from Rs.200 crores to Rs.600 crores.
  • Increase in boarding costs of students of residential and Ashram Schools from Rs.350 to Rs.500 per month.
  • Establishment of 114 ‘Kitturu Rani Chennamma Residential Schools' at a cost of Rs.100 crores for the benefit of girls of scheduled castes and scheduled tribes.
  • Incentive of Rs.10, 000 for scheduled caste and scheduled tribe girls securing above 75% marks in 10th Standard and Rs.5000/- for girls securing above 60% marks.
  • Increase in the intake of number of students in hostels by 50%. Special arrangements for training girls in computer language skills and mathematics at a cost of Rs.20 crores.
  • Rs.150 crores for developing scheduled caste and scheduled tribe colonies.
  • Renaming of Lidkar Corporation as Jagajivanram Development Corporation and earmarking of Rs.5 crores for technical assistance and market exposure to families dependant on leather craft.
  • Rs. 5 crores for construction of Jagajivanram Memorial Bhavan.
  • Framing of rules for converting Lambani Tandas into revenue villages and grant in aid of Rs.10 lakhs for converting Sevalal Bhavans in 200 lambani tandas.
  • Rs.10 crores for building district level Banjara Bhavans in Gulbarga, Bijapur, Haveri, Chitradurga and Shimoga districts.
  • Rs.50 crores to provide basic infrastructure facilities to 500 banjara thandas.
  • Rs.5 Crore for developing Gollara Hattis.
  • Rs.50 crores for construction of backward class students' hostels.
  • Rs.20 crores for providing basic facilties to Vishwakarma, Kshatriya, Uppara, Savitha, Kuruba, Madivala, Devanga, Billava Community Organisations.
  • Loan upto Rs.5000 and Rs.5000 Grant-in-Aid through Devaraj Urs Development Corporation to one-lakh families engaged in Kammara, Kumbara, Badiga, Devanga, Murthedara, Akkasaliga, Dargi, Kshourika.
  • Rs.35 Crore for construction of hostels for minorities and Rs.15 Crore for construction of Shaadi Mahals.
  • Rs.5 Crore for the skills development of minorities.
  • Rs.5 Crore for building Haj Bhavan.
  • Rs.10 Crore for minority institutions belonging to Christian, Buddhist, Jain, Sikh, etc.

Women and Child Development

  • Rs.20 Crore for construction of 5,000 houses for Devadasi women.
  • Rs.10 lakhs grant in aid for construction of Sthree Shakthi complex, comprising of market centres in every taluk.
  • Rs.400 monthly pension to destitute women aged above 50 years.

Housing

  • Rs.1,200 Crore provided for 3 lakh houses to be constructed by the Rajiv Gandhi Rural Housing Corporations and construction of 1 lakh houses under the Indira Avas Scheme.
  • Rs.100 Crore for providing one-lakh sites under Ashraya, Ambedkar, Indira Avas Yojana and other similar schemes.

Subsidy for Skill Training

  • Rs.100 Crore provided for skill development programmes.
  • Training subsidy ranging from Rs.3000 to Rs.10000 will be provided for ITI's educational institutions and Industrial Centres for providing training.
  • Establishment of skill development centres in hostels of SC/ST's and backward classes and minorities.
  • Rs.15 Crores for establishing special training centres in every district, to train in apparel making.

Food

  • Rs.750 crore for supplying essential commodities to families below poverty line through Public Distribution System.

Incentives for Development of Industries

  • Equity contribution of Rs.50 Crore to Mysugar Company.
  • Rs.1000 Crores allocated for acquiring land by the KIADB to form industrial estates, to encourage the establishment of small and medium industries.
  • Rs.80 Crores provided for establishing Apparel Clusters in Gulbarga, Bellary, Hubli, Belgaum, Bagalkot, Shimoga, Davangere, Ramanagar and Chikballapur.

Support for Weavers

  • Rs.30 Crores has been provided for weavers to construct living cum work sheds at a cost of Rs.60,000 per unit, for 5,000 beneficiaries.
  • Continuation of the scheme of providing loans at an interest rate of 3%.

Animal Husbandry and Dairy Farming

  • Rs.200 crores for providing subsidy of Rs.2 per litre for the families of farmers, through milk producers' co-operative societies.
  • Rs.5 crores for insurance of livestock to groups formed by sheep and goat rearers to encourage following scientific rearing methods.
  • Grant of Rs.10 lakhs for each taluk to the voluntary organisations for establishing goshalas for cattle protection.
  • Rs.5 Crore subsidy for 1000 new milk producers' co-operative societies in the districts of North Karnataka.
  • Rs.10 Crore to establish cold storage units in Gulbarga and Belgaum divisions.
  • Rs.10 Crore to develop the Amruthmahal Kaval lands attached to the Karnataka University of Veterinary Science in Chikmagalur district.

Fisheries

  • 2,000 self help groups to be formed and financial assistance of Rs.50, 000 as loan and Rs.10, 000 as seed money to be disbursed to these groups.
  • Loan to fisherman at an interest rate of 3%.

Agricultural marketing

  • Rs.750 Crores for support price of agricultural crops.
  • A well equipped wholesale market for onions, potatoes to be established in Dasanpura Hobli, Bangalore North Taluk at a cost of Rs.100 Crores.
  • Establishment of a well equipped vegetable market in Byatarayanapura Bellary Road, Bangalore in Public Private Partnership model.

Project Plan for permanent water supply

  • Beginning with Bijapur and Chitradurga Districts, a special scheme has been conceived to provide drinking water. Rs.100 Crores of the total, Rs.800 Crores for supply of drinking water has been delineated for this scheme.
  • Rs.5 Crores is provided for giving awards to Taluk Panchayats, Village Panchyats and Zilla Panchayats who have excelled in rural sanitation.
  • Rs.5 Crore for installing solar powered streetlights in rural areas.
  • 50% of the estimated cost of Rs.10 lakhs for construction of each Gram Panchayat office will be provided.

Primary and Secondary Education

  • Recruitment drive of teachers for the educationally backward districts of the State.
  • Establishing 114 Secondary and Higher Secondary schools, with private partnership similar to Kendriya Vidyalaya. This will be done under the aegis of the centrally sponsored Sarva Shikshana Abhiyana Scheme in educationally backward districts.
  • Relaxing of economy orders to recruit teachers for the vacancies in GIA schools. Rs.35 Crores has been provided for the purpose.

Higher Education

  • Rs.10 Crore is provided for infrastructure to Tumkur University and Bijapur Women's University.
  • It is proposed to rename Tumkur University as Dr. Shivakumar Swamiji University.
  • Rs.2 Crore has been provisioned for starting a postgraduate study centre at Kushalnagar in Kodagu district.
  • Establishment of separate Ayurveda Vaidya University.
  • Rs.10 Crore for the establishment of a new university at Davanagere.
  • Rs.10 Crore for establishment of an Engineering college at Gangavathi.
  • Rs.5 Crore for the establishment of Sanskrit-Veda university at Bangalore, Music and Fine Arts University at Mysore and development of Sanskrit Research and Academy Centre at Melkote.

Health and Family Welfare

  • Procurement of 517 ambulances at a cost of Rs.221.25 Crores under ‘Arogya Kavacha'. Free health insurance to poor families.
  • Free medical assistance to 16 lakh poor families up to Rs.1.50 lakh, through ‘Suvarna Aarogya Suraksha' scheme in backward district of Gulbarga Division.
  • Converting mental health hospital at Dharwad into an autonomous body and upgradation at a cost of Rs.10 crores.
  • Providing additional 250 beds in the general hospitals of Belgaum and Bidar and upgradation of Bellary District Hospital.
  • Rs.15 crores for pre-natal care at the rate of 2000/-per head to pregnant women below poverty line.

Science and Technology

  • Rs.10 Crore for setting up of Institutions of Excellence in the field of science education, upgradation of science education in colleges-universities. Science education centres at district levels and museums etc.,
  • 1000 acres land for establishment of a branch of Indian Institute of Science of Bangalore in Chitradurga district.

Information Technology and Bio Technology

  • Establishment of Biotech Park in important cities outside Bangalore. Rs.10 Crore for establishment of IT park in Gulbarga Division.
  • Grant-in-Aid of Rs.20 lakhs per unit, for establishment of information technology industries in Gulbarga Division.

Removal of regional imbalance

  • As per the recommendations of the Dr. D.M. Nanjundappa Committee Report Rs.2, 674 Crore is earmarked.
  • 1,000 new milk co-operative societies to be formed in North Karnataka.
  • Cold storage unit to store milk one each in Gulbarga and Belgaum will be set up at an estimated cost of Rs.10 Crore.
  • Rs.10 Crore to establish IT Park in Gulbarga.

Supplementary Schemes for the Industrial Development of North Karnataka

  • Steel Zones will be established in 10000 acres at Koppal, Bellary and Bagalkot districts.
  • Foundry Parks to be established in Mache village of Belgaum District.
  • Spice Park to be established in Byadagi.
  • Establishment of an Auto Park near Basavakalyan in Bidar district.
  • Providing of Infrastructure and Residential Workshop to the silversmiths in the village of Mangoor in Belgaum district.

Labour Welfare

  • Rs.10 Crore provided for setting up unorganized Labour Welfare Board.
  • Rs.5 Crore to implement insurance scheme for autorikshaw and taxi drivers.
  • Rs. 1 Crore for establishment of research centre about industrial relations in Bangalore University in memory of the famous labour leader late Alampalli Venkatrao.

Revenue and Endowment

  • Rs.100 Crore for construction of ‘Suvarna Soudha' in Belgaum.
  • Amendment to Land Reforms Act to enable purchase of land for establishment of educational institutions and industries.

Development of district headquarters

  • Rs.25 Crore for development of Yadgir town as district headquarters and Rs.25 Crore for construction of Chikkaballapur district office complex.
  • Rs.10 Crore for development of Kaginele Kshetra.
  • Rs.5 Crore for development of Sri Renuka Yellamma Temple at Savdatti.
  • Rs.5 Crore for development of Male Mahadeshwara Hills, Biligiri Ranga Hill and Himavad Gopalaswamy Hill.
  • Rs. 10 crores for development of various cultural centers.
  • Rs.10 crores for development of integration centers.

Transport

  • Purchase of 4,000 new vehicles by the transport corporations. Rs.100 Crore for improving infrastructure development for commuters.

Kannada and Culture

  • Rs.5 Crore for the Kannada Development Authority.
  • Rs.10 Crore for the formation of Border Area Development Authority.
  • Rs.2 Crore to establish a research centre at the Kannada Sahitya Parishad and for continuation of the Kannada dictionary project.
  • Rs.2 Crore to bring out an encyclopedia website in Kannada on the lines of Wikipedia.
  • Rs.5 Crore for the inclusion of Kakati village to Kittur Authority and its development.
  • Rs. 5 crores for the construction of Amruthotsava Bhavan on the occasion of amruthotsava of Kannada Film Industry.
  • Rs. 10 crores for the construction of freedom fighters centers and memorials.

Press media

  • Rs.25 lakh for the construction of patrika bhavan in district headquarters.
  • Increase in the limit of annual income of retired journalists to get monthly pension from Rs.5000 to 50,000.
  • Working Journalists and retired journalists to be brought under ‘Yashaswini Sahakara Arogya Vima Yojane'.
  • Providing free bus passes to members of the press, at district level.

Tourism

  • Rs.180 crores for Tourism Department.
  • Rs. 10 crores for the development of Nandi Hills, Kemmannagundi and Kodachadri hill stations.
  • Rs.5 Crore for development of Tagore beach in Karwar.
  • Rs. 5 Crore for renovation of Brindavan garden in Krishnaraja Sagar.

Youth Services and Sports

  • Rs.10 Crore for establishment of 10 sports hostels.
  • Rs.10 Crore for renovation and lying of tracks in stadias at Dharwar, Gulbarga, Udupi and Mysore cities.
  • Rs.2 Crore for laying hockey turf in Coorg district.
  • Financial incentives to State's sports person, selected as official participants in international sports events.
  • Increase in monthly pension to wrestlers.

Administrative Reforms

  • Establishment of Expenditure Reforms Commission consisting of experts.
  • Establishment of ‘Challenge Fund' with Rs.10 Crore to encourage of new ideas in administration.

Government Employees

  • Decided to increase the HRA rates to 20% in Class-A cities, 15% in Class-B cities and 9%, 6% and 5% in respect of Class-C, D & E cities respectively.
  • The monthly wages for the daily wage employees who have completed 10 years will be increased by up to Rs. 1000.

Law

  • Rs.50 Crore for development of court buildings in district and taluk head quarters.
  • Rs.10 Crore for development of Law University at Hubli.
  • Contribution of Rs.1 Crore to the Advocates Association's Welfare Fund.

Tax Proposals

  • Increase in tax collection in 2008-09 expected to be 10.7%.

Commercial Taxes

  • Total revenue from Commercial Taxes during 2009-10 expected to be Rs. 25125 crores.

Value Added Tax

  • Tax exemption on food grains and pulses extended for one more year.
  • Tax on tamarind and soap-nut reduced to 2%.
  • Tax on coconuts, copra and desiccated coconut powder reduced to 2%.
  • Tax on arecanut reduced to 2%.
  • Baje exempted from tax.
  • Footwear costing upto Rs. 100 exempted from tax.
  • 4% tax concession on some more goods sold through canteen stores department.
  • 4% taxes on all tread rubber used in re-treading of tyres.

Sales Tax

  • Tax exemption on 75000 kilo liters of diesel sold to fishermen.

Luxury Tax

  • Tax exemption limit increased to Rs. 499/-.
  • Levy of tax on actual rents.
  • Tax slabs revised – 4% on room rents of Rs. 500/- to Rs. 1000/-, 6% on room rents exceeding Rs. 1000/- upto Rs. 2000/- and 10% on room rents exceeding Rs. 2000/-.
  • Tax on marriage halls reduced to 10%.
  • Tax on exhibition halls reduced to 10%.

Professions Tax

  • Persons with monthly salaries upto Rs. 10000/- exempt from tax.
  • Branches of educational institutions running schools and colleges upto 12th standard exempt from tax.

Entertainments Tax

  • 10% tax on sports involving proprietary teams.
  • Tax on cinemas reduced to 30%.

State Excise

  • Tax collection expected to reach target of Rs. 5627 crores for 2008-09.
  • Expected collection for 2009-10 Rs. 6565 crores.

Stamps & Registration

  • Tax collection expected to be Rs. 3318 crores for 2008-09.
  • Stamp duty on all transfer of moveable properties reduced from 7.5% to 6% resulting in revenue loss of Rs. 400 crores.
  • Stamp duty rates modified.
  • On agreements not involving transfer of immoveable property 0.25% of agreement value.
  • 1% for joint development agreement.
  • 6% for arbitration award.
  • 0.5% with a limit of Rs. 10,000 on mortgage.
  • Rs. 500 for duplicate registration.
  • 1% to 6% on lease of immovable properties.
  • 1% on General Power of Attorney to developers and Rs. 200 on other General Power of Attorney.
  • 5% on transfer of property through release.

Motor Vehicles tax

  • Estimated collection for 2009-10 – Rs. 2063 crores.
  • Lifetime tax on electric motor vehicles reduced to 4%.
 
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