CM Basavaraj Bommai GST collection increases in 2021-22 over last year, ‘showing we are on recovery path’
CM Basavaraj Bommai GST collection increases in 2021-22 over last year, ‘showing we are on recovery path’
Karnataka Chief Minister Bommai began his maiden budget presentation on March 4 at 12.30 pm at Vidhana Soudha in Bengaluru. He presided over a cabinet meeting before the presentation, where the state budget 2022-23 was approved.
This is Mr Bommai’s first budget presentation and comes ahead of the Karnataka Assembly elections next year.
increase in revenue collection
The chief minister said the revenue collection, which started sluggishly at the beginning of the year due to the second wave of the COVID-19 pandemic, picked up later. Due to this incident, the share of central taxes has been increased from Rs 24,273 crore to Rs 27,145 crore in the Revised Estimates of the Union Budget. The Union Budget for 2022-23 has estimated ₹29,783 crore as tax devolution to Karnataka.
GST
“The increase in GST collections in 2021-22 as compared to the previous year shows that we are on the path of recovery,” Mr Bommai said. The central government has given ₹7,158 crore as GST loan to ₹18,109 crore in addition to GST compensation, which “has helped us not only effectively manage COVID-19 and its related expenses but also Ensured that all development work and programs were adequately funded, thereby encouraging development.
As scheduled, the GST compensation will expire by June 2022, but Mr Bommai has appealed for it to continue for at least three more years.
budget size increased
The boom in Karnataka’s economy has helped the state government cut budgetary borrowing in 2021-22. Borrowing has been revised from ₹67,100 crore to ₹63,100 crore. This is even as Karnataka has increased the overall size of the budget for 2021-22 from ₹ 2,43,734 crore to ₹ 2,57,042 crore in the revised estimates. The size of the budget has increased by 7.7% as compared to 2020-21.
‘Asha’s budget’
Describing the 2022-23 budget as ‘one of hope’ after the pandemic, Mr Bommai said there has been a better increase in resources now. The economy has revived with the services sector growing at 9.2%, the industrial sector at 7.4% and the agriculture sector at 2.2%. GSDP is expected to grow by 9.5 percent over the previous year.
‘Pancha Sutra’ for wellness
Under the ‘Panch Sutra’ (Five Point Formula), backward areas of Karnataka will be scientifically identified to improve the Human Development Index of all the districts.
‘Namma Clinic’
The government proposed to set up ‘Namma Clinics’ in major cities and all wards of Bengaluru. These clinics will provide diagnosis and treatment of non-communicable diseases and, if required, refer patients to higher facilities for specialist treatment.
More Jayadeva Center
A 350 bedded branch of Jayadeva in Hubballi and a trauma center at Tumakuru have been proposed. 500 children with congenital hearing loss will get cochlear implants this year under government funds.
₹1,000 crore for PHC improvement
The monthly honorarium of Accredited Social Health Activists (ASHA) will be increased by ₹1,000. A total of ₹1,000 crore has been allocated to improve 100 Primary Health Centers (PHCs).
Crche at Taluk Headquarters
The State Government will start Shishu Greh in two taluk headquarters per district in areas having high number of working women. The honorarium of Anganwadi workers has also been increased by ₹1,500 for those who have served for 20 years, and ₹1,250 for those who have served between 10-20 years.
₹500 crore for primary schools
The government has set aside Rs 500 crore for basic facilities in primary schools. It also proposes to set up seven new universities including Chamarajanagar, Bidar, Haveri, Hassan and Bagalkot.
Fortified rice to combat malnutrition
Rice will be distributed in 14 districts under a new scheme named ‘Poushtik Karnataka’ with additional nutrients at a cost of 93 crores to combat malnutrition.
widows wage scheme
The government has proposed to increase the subsidy for women under the widow wage scheme. The monthly pension for sexual minorities has been increased to ₹800, while the pension for acid attack victims has been increased from ₹3,000 to ₹10,000.
ORR-Airport line to be completed by March 2025
On the ongoing metro projects in Bengaluru, the Chief Minister said that 33 km of under-construction metro lines would be made operational by the next financial year.
The Chief Minister said that the 58 km ORR-Airport Metro line from Central Silk Board to Kempegowda International Airport (KIA) would be completed by March 2025.
Two lines under the third phase of Namma Metro
The Detailed Project Report (DPR) of Phase III of the Namma Metro project will be submitted to the Central Government. Two new lines have been proposed under the third phase: one from JP Nagar to Hebbal, covering a distance of 13 km, and the other from Hosahalli to Kadabagere. The total cost of the project is estimated to be ₹11,250 crore.
Sarjapur to Hebbal Metro Line
Bengaluru will get a new metro line from Sarjapur to Hebbal. A Detailed Project Report (DPR) will be prepared for the construction of 37 km long metro line via Agra, Koramangala and Dairy Circle. The estimated cost of the project is ₹15,000 crore.
No new allocation for suburban rail project
The civil work for the suburban rail project from Baiyappanahalli to Chikkabanavara will start soon. Rail Infrastructure Development Company (Karnataka) Limited (KRIDE), which is the implementing agency, has already floated tenders for this corridor. No fresh budgetary allocation has been made for this project.