In his fifteenth finances presentation on Friday, Karnataka chief minister Siddaramaiah who’s the one finance minister to have offered as many, took the chance accountable the central authorities for its “unscientific implementation of GST”, which led to the state having a income deficit finances. He highlighted that the stepmotherly remedy meted out by the Centre prompted Karnataka a lack of Rs 59,000 crore.
Siddaramaiah offered a second consecutive income deficit finances however emphasised that the Congress continues to stay dedicated to funding its 5 assure schemes, which introduced the social gathering to energy in the meeting polls final yr.
“For the financial year 2024-25, revenue deficit is estimated to be Rs 27,354 crore. Fiscal deficit is estimated to be Rs 82,981 crore, which is 2.95% of GSDP. Total liabilities at the end of 2024-25 are estimated to be Rs 6,65,095 crore, which is 23.68% of GSDP,” the CM mentioned in his finances speech. (*5*)
The 5 assure schemes—Gruha Lakshmi, Gruha Jyothi, Yuva Nidhi, Anna Bhagya, and Shakti—will allow the federal government to “put Rs 52,000 crore in the hands of the people during 2024-25”. An common of Rs 50,000 to Rs 55,000 is transferred to every household yearly by means of the assure schemes, the CM mentioned.
Congress Aims for Political Dividends
Siddaramaiah underscored the Congress’s dedication to funding the 5 schemes. The ensures labored in favour of the social gathering in Karnataka however didn’t wield the identical degree of affect in different states like Rajasthan and Madhya Pradesh. The Congress hopes to reap political dividends with these ensures in the upcoming Lok Sabha polls. After relying solely on ensures to return to energy in May final yr, Siddaramaiah was beneath stress to announce extra welfare schemes for different sections of society by his ministers and legislators, sources mentioned.
There have been protests and a walkout staged by the opposition Bharatiya Janata Party (BJP) and Janata Dal (Secular) through the presentation, accusing Siddaramaiah of misusing the finances session to focus on the central authorities. BJP’s state president BY Vijayendra referred to as it a regressive finances, one which was being utilized by the CM to politically instigate the general public with no advantages for the folks, youth, or farmers of the state.
Bolstering Bhagyas
Siddaramaiah earmarked Rs 52,200 crore, constituting 43% of the overall welfare scheme allocation of Rs 1,20,373 crore, to handle “price rise, unemployment, and income disparities”. Despite an estimated income deficit of Rs 27,354 crore and a fiscal deficit of Rs 82,981 crore, he defended the welfare expenditure, emphasising its necessity to uplift the underprivileged. Under the assure schemes, Rs 55,000 is being transferred to every household yearly, he mentioned.
Siddaramaiah accused the BJP of falsely portraying the state’s financial misery on account of assure schemes as “freebies” or “Bitti Bhagyas”, criticising it for failing to handle the folks’s wants.
“Our opponents are making all efforts to lower our morale by negative propaganda that the government has gone bankrupt and the economy has collapsed in the state due to guarantees, which they describe as freebies or Bitti Bhagyas. Those who failed to respond to the distress call of the people are now criticising us to cover their faults,” mentioned Siddaramaiah, whereas accusing the BJP of “stealing the schemes” and passing them off as its personal.
Contrary to allegations of election gimmickry, Siddaramaiah identified that the schemes have been in response to the suggestions acquired through the Bharat Jodo Yatra, striving to create employment, improve buying energy, and foster a good and simply society by redistributing wealth.
Drought Relief Criticism
Accusing the Centre of neglecting drought reduction, Siddaramaiah mentioned that between 2023-24, the Karnataka authorities declared drought in 223 talukas and submitted a number of memorandums to the central authorities, searching for an allocation of Rs 18,171 crore to supply reduction to affected farmers.
He accused the Centre of not contemplating Karnataka’s request and mentioned the duty fell on his authorities to take measures to mitigate the severity of the drought state of affairs.
“Rs 629 crore has been released for input subsidy to 33.19 lakh farmers up to Rs 2,000 per head and mini fodder kits at the cost of Rs 20 crore were distributed to reduce the severity,” the CM mentioned, as soon as once more attacking the Centre for its dismal fund allocation and likening it “to feeding an elephant with half-a-penny-worth buttermilk”.
He outlined that Karnataka suffered a complete lack of Rs 1.21 lakh crore since 2018 on account of pure calamities occurring annually and the Centre had launched solely Rs 9,300 crore since 2018, and the state authorities spent Rs 15,874 crore from its exchequer by means of numerous departments.
Siddaramaiah identified that through the UPA regime, a number of professional-folks schemes, aiming to supply necessities like meals safety, healthcare, training, employment, and housing have been carried out.
“The anti-people decisions of the central government for the last 10 years have led to alarming developments such as widening inequality, concentration of wealth in few hands and crony capitalism,” he mentioned.
Underground Tunnels for Easing Traffic and Brand Bengaluru
Siddaramaiah introduced plans to resolve site visitors congestion in Bengaluru by means of underground tunnels and all-climate roads. The peripheral ring highway will probably be repositioned as Bengaluru Business Corridor, with Rs 27,000 crore allotted for development.
He additionally mentioned that beneath the Sugama Sanchara-Brand Bengaluru idea, an skilled organisation of worldwide reputation has been engaged the place primarily based on their report, measures will probably be taken to ease site visitors congestion in town.
“On a pilot basis, a tunnel will be constructed this year at Hebbal junction where there is high traffic congestion,” the CM said.
Under the peripheral ring highway scheme, a 100-km highway is already being developed at a price of Rs 200 crore and an extra 100 km of roads will probably be developed. Plans to develop the Bengaluru Business Corridor to handle site visitors congestion and promote massive-scale financial actions in Bengaluru are additionally afoot.
“Under this project, RFP has been invited to construct a 73 km road at a cost of Rs 27,000 crore under the PPP model. It is proposed to start the project this year itself. Internationally renowned architects have been invited to prepare a novel design for constructing a 250-metre-high Skydeck in Bengaluru. It will become a landmark tourist destination in the city,” he mentioned in his finances speech.
It was additionally introduced that an extra 44 km to the prevailing 74 km of the Namma metro line will probably be added to town by March 2025.
A brand new Knowledge, Healthcare, Innovation and Research (KHIR) City will probably be established on 2,000 acres close to Bengaluru, the CM introduced, “The new KHIR City will attract an investment of Rs 40,000 crore and provide employment to about 80,000 people,” he mentioned.
Record Tax Collection
BBMP broke a tax assortment file of Rs 4,300 crore in 2023-24, with expectations to achieve Rs 6,000 crore in 2024-25. Siddaramaiah highlighted the digitising of property tax information and introduced plans for Namma Metro Phase-3 at an estimated value of Rs 15,611 crore.
Extended Shop Hours to Boost Commerce
Siddaramaiah’s announcement of prolonged enterprise hours is anticipated to convey cheer to business institutions in the capital metropolis. The administration will permit retailers and institutions in Bengaluru and 10 different company areas to open until 1 am, aiming to spice up commerce and commerce.
Cover-up of Congress Failures: BJP
Former CM Basavaraj Bommai mentioned that Siddaramaiah was attempting accountable the Centre in order to cowl up his failures. “The dual policy of Siddaramaiah is exposed,” Bommai mentioned.
“Siddaramaiah, just to cover up his failures, is trying to bring out subjects which are not in the budget and trying to blame (the) centre unnecessarily. Whatever is expected from the government of India…devolution of funds…it has come. If at all there is a shortage, it is a shortage of (collection) state’s own tax efforts,” the BJP chief mentioned.
Bommai additionally mentioned that Siddaramaiah had borrowed Rs 1.05 lakh crore and solely Rs 1,000 crore (in comparison with final yr) was the extra quantity put aside for improvement.
