Chief Minister Basavaraj Bommai termed the Union Budget as “development-oriented” and said the state is expected to get an additional capital outlay of around Rs 3,000 crore from the Center in 2022-23.
In his response to the Union budgetary proposals, Mr Bommai said the Centre’s outlay for capital expenditure for the state will increase from Rs 26,000 crore in 2021-22 to Rs 29,000 crore in 2022-23.
“The state is likely to get ₹3,000 to ₹3,500 crore from the Center in its capital account. The actual figures will be known tomorrow or the day after tomorrow,” he said.
Capital expenditures
The outlay for capital expenditure in the Union Budget has been increased by 35.4% from ₹5.54 lakh crore in the current year to ₹7.50 lakh crore in 2022-23. In addition, under the “Scheme of Financial Assistance to States for Capital Investment” to assist states in catalysing overall investment in the economy, the outlay has been increased from ₹15,000 crore to ₹1 lakh crore in the Revised Estimates for 2021-22 went. “These 50-year interest-free loans are more than the normal lending to states,” the budget said.
“This is a post-COVID budget. This is a forward-looking budget and more investment will come through this budget and further growth of the economy will be boosted,” the chief minister said.
striking balance
The Chief Minister said that the Union Budget has struck a balance between rural and urban development by increasing outlays for both rural development and urban projects. He said that the increased allocation for Jal Jeevan Mission, Pradhan Mantri Awaaz Yojana, Pradhan Mantri Gramin Sadak Yojana and health will accelerate the economic recovery in the post-Covid period.
Increase in public expenditure on national highways, railways, digital economy and urban projects will boost economic growth and create more jobs. The Chief Minister said the Centre’s commitment to undertake 68 per cent capital procurement to reduce imports and promote self-reliance in equipment for the armed forces would give a boost to the domestic industry.
The budget has given much needed support to the MSMEs and the small and medium industries of the state will be benefitted. The Emergency Credit Line Guarantee Scheme (ECLGS) has provided additional credit to MSMEs. The Chief Minister said that the extension of ECLGS and enhancement of its guarantee cover from ₹ 50,000 crore to ₹ 5 lakh crore by March 2023 will help MSMEs, hospitality and tourism enterprises.
on crypto tax
On the introduction of 30% cryptocurrency, the Chief Minister said, “This cryptocurrency is still in the initial stage which is to be studied. Only after careful study can we really assess right and wrong.” Finance Minister Nirmala Sitharaman said that income from digital assets will be taxed at 30%.