Karnataka Chief Minister HD Kumaraswamy presented his coalition government's maiden Budget for fiscal 2018-19 at the Vidhan Soudha in Bengaluru today (July 5). The Budget has provisions to repair the buildings of government educational institutions, build a superspeciality hospital and waive the loans of a certain category of farmers, among other features.Though Congress Legislature Party leader and former Chief Minister Siddaramaiah told Kumaraswamy to present a Supplementary Budget since he had presented the Budget for this fiscal on February 16, the Chief Minister secured Congress President Rahul Gandhi's approval to present the full Budget as the head of the coalition government.1. Loan waiver for only those farmers who have defaulted in loans up to 31-12-2017 in the first stage and whose borrowings are less than Rs 2 lakh. Families of government officials and officials of the co-operative sector, farmers who have paid income tax for the past three years and other ineligible farm loan recipients are outside the purview of the loan waiver.2. Proposed hike of Rs 1.14 on petrol prices and Rs 1.12 on diesel.3. Kumaraswamy also revealed the state's plan to levy an additional excise duty of four percent on India-Made Liquor (IML).4. A special package of Rs 150 crore provided for repairs of buildings housing government primary schools, high schools and PU colleges. Special grant of Rs 250 crore to develop and repair infrastructure of government graduate and post graduate colleges. New medical college will be established at Kanakapura in Ramanagara district.5. Mandya Medical Sciences Institute Hospital will be upgraded to 800 bed hospital at a budget of Rs 30 crore. A grant of Rs 12 crore will be provided in the first phase to establish a seperate unit at Kidwai Cancer Hospital for bone marrow transplant. Rs 40 crore is being allocated to establish a 300-bed superspeciality hospital at Ramanagara. New super specialty hospitals will be opened at Belagavi, Kalaburgi and Mysuru cities to provide tertiary health services relating to heart, cancer and other diseases.6. In order to promote tourism, the government will offer incentives regarding capital to companies who agree to open 3-star hotels with 500 rooms and other facilities, and to those who construct service apartments. The government will also set up facilities along highways where tourists can take a break and get good food to eat.7. In an attempt to enhance skills and entrepreneurship quality, Kumaraswamy will launch a new scheme called Kayaka. Under this scheme, the government will disburse loans up to Rs 5 lakh at 0 percent interest, and between Rs 5 lakh and Rs 10 lakh at 4 percent interest. New scheme called “Compete with China” to be launched in Karnataka.8. In an attempt to address the issues of street vendors/small vendors, state government to come up with Badavara Bandhu mobile service in five cities of Karnataka.9. The CM announced a “phased” increase over the next five years in the allowance of ₹6,000 for lactating and pregnant mothers under the Mathru Shree scheme.10. The government has allocated Rs 50 crore to rejuvenate Bellandur lake. Water from the lake will be transported to rural pockets of Bengaluru through drip irrigation with private partnership.11. Chemical effluent treatment plant to come up in Peenya Industrial area at a budget of Rs 10 crore. The government will also set up 42 continuous ambient air quality monitoring stations at a cost of Rs 96 crore under District Mineral Fund.12. Rs 50 crore special package for the all round development of Mandya city.13. The CM has proposed the construction of SC/ST model/New villages in select districts. Priority will be given to tribals.The budget has allocated Rs 10 crore for the development of various backward and deprived castes, communities. The budget aims at uplifting communities like Shillekyatha, Dombidasa, Gowli, Heluva, Shikaries, Hoovadiga, Kanchugara, Darji, Kammara, Thigala, Budubudike, Badige, Hatgara, Kareokkaliga.14. The state government will celebrate Adi Shankara Jayanti.15. Kumaraswamy has given a push for 95 kms of additional metro rail network for Bengaluru under Phase 3. This will include 42.75 kms from JP Nagar to KR Puram, 12.5 kms from Magadi Road Toll Gate to Kadabagere, 3.07 kms Metro from Gottigere to Basavapura, 18.95 kms metro line from RK Hegdenagar to Aerospace park, 10.6 km metro line from Kogilu Cross to Rajanukunte, and 6.67 kms of Metro Network from Iblur to Carmelram.<doc-sep>HD Kumaraswamy Total Receipts are estimated to Rs 1,66,470 crore during 2018-19. Total Expenditure is estimated to be Rs. Rs 2,01,535 crore. The first Karnataka Budget of the newly elected government was presented by Chief Minister HD Kumaraswamy on Thursday. Some key policy and tax announcements are as follows: The government announced an amount of Rs 34,000 towards crop loan waiver. Also, loans of upto Rs. 2 lakh of each farmer will be waived. The Karnataka state finance commission’s recommendation for increasing of share of local bodies from 42% to 48% of state’s own taxes will be implemented. A new scheme named ‘Kayaka’ has been proposed to enhance skill development and entrepreneurship quality in self help groups. It is proposed to provide loan upto a maximum of Rs.10 lakh for self-help groups. Tax rate on petrol has been increased from 30 % to 32% and diesel from 19% to 21%. The taxation on consumption of electricity is proposed to be increased from 6% to 9%. The graphs below compare Karnataka’s expenditure on four key sectors as a proportion of its total budget, with 18 other states: (Source: PRS India)<doc-sep>HD Kumaraswamy's budget also proposed the establishment of a yoga centre in Bengaluru. (File) The Karnataka government has proposed to establish a 'Brahmin Development Board' for development of economically backward people of the community. It is also planning to celebrate the "jayanti" of 8th century Advaita philospher Adi Shankaracharya, Chief Minister HD Kumaraswamy announced in the 2018-19 state budget presented by him. "It is a long time demand of the Brahmin Community to provide assistance for the development of economically backward people in the Brahmin community," said Mr Kumaraswamy, who also holds the finance portfolio for the state. Presenting his Congress-JD(S) coalition government's first budget in the assembly, he said it was proposed to establish the 'Karnataka State Brahmin Development Board' for the purpose of development of economically backward people in the Brahmin community and provide Rs 25 crore for this purpose. Pointing out that Adi Shankaracharya was a towering personality in the religious tradition, he proposed that Shankaracharya Jayanthi shall be celebrated all over the state. Mr Kumaraswamy's family, including his father and former Prime Minister HD Deve Gowda are ardent devotees of Sringeri Sharada Peetha, established by Adi Shankaracharya. The budget also proposed a well-equipped yoga centre to be established at Sri Kanteerava Studio Premises at Bengaluru in memory of Kannada thespian Rajkumar, whose memorial is also located in the same city. A fan of Rajkumar, Mr Kumaraswamy has credited the veteran actor for his attraction to cinema from his college days that later drove him to the business of film-making and distribution. The budget also proposes to provide capital of Rs 30 crore to open a Film University at Ramanagara with private partnership. It also sought to provide Rs 40 crore capital to encourage industries providing services to film industries such as photography, editing, sound recording institutes, animation studios and computer graphic studios in Ramanagara film city.<doc-sep>
Karnataka budget 2018: What is going to become costlier for you Tax on electricity, cost of Indian made liquor is set to increase news Karnataka Budget Chief Minister HD Kumaraswamy finally answered the prayers of thousands of farmers across the state and announced that his government will waive farm loans up to Rs 2 lakh per farmer. As this will cost the state exchequer Rs 34,000 crore, the budget presented on Thursday also announced the increase of fuel prices, motor vehicle tax, power tariff and alcohol prices in the state. “Keeping in view the need to augment resources for the welfare needs of the state, I propose to increase the rate of tax on petrol from the existing 30% to 32% and diesel from 19% to 21%,” CM Kumaraswamy said. This means that petrol price will be increased by Rs 1.14 per litre and diesel by Rs 1.12 per litre. “Even with this increase, the rate of petrol and diesel will be lower in Karnataka compare to neighbouring states,” the CM added. The taxation on consumption of electricity has also been increased from 6% to 9%. “The tax rate on consumption of energy will increase from 10 paise per unit to 20 paise per unit,” Kumaraswamy announced. The state has also set a revenue target of Rs 18,750 crore for the Excise Department for the 2018-19 fiscal. The CM also proposed an increase in the existing rates of excise duty on Indian Made Liquor by 4% on all 18 price slabs. “Till June 2018, Rs 4,674 crore excise duty has been collected. With this increase in excise duty, and with effective enforcement and regulatory measures, the department would be achieving a revised target of Rs 19,750 crore for the 2018-19 fiscal,” Kumaraswamy said. Another major increase in tax has been for the motor vehicle tax on private service providers. An increase of 50% on motor vehicle tax for omni buses and private sector vehicles under lease agreement with industrial undertakings. The taxes are generally set based on the sq m area of the floor of the vehicle. The existing rates of Rs 1,100, Rs 1,200, Rs 1,300 and Rs 1,500 of motor vehicle tax has been increased to Rs 1,650, Rs 1,800, Rs 19,50 and Rs 2,250 respectively.