Karnataka: Siddaramaiah to table his 14th budget in assembly today

Chief minister Siddaramaiah who holds the Finance portfolio will present his 14th budget, which will also be his seventh as a chief minister on Friday. It will be the highest number of budgets presented by any chief minister or finance minister in the state so far, surpassing late chief minister Ramakrishna Hegde, officials familiar with the developments said.

Siddaramaiah had earlier pointed out that the size of the state budget this year, will be about ₹3.39 lakh crore, just over right per cent more than the previous budget of ₹3.09 lakh crore presented by Basavaraj Bommai-led BJP government at the beginning of the 2023-24 fiscal.

The budget size will be increased to make way for implementation of the five guarantees promised by the Congress government ahead of the Assembly elections. Siddaramaiah had earlier said that the cost of implementing the five schemes – Anna Bhagya, Gruha Jyothi, Gruha Lakshmi, Gruha Shakti, and Yuva Nidhi – is estimated at around ₹59,000 crore annually. While three of the schemes have begun, two of them, Gruha Lakshmi and Yuva Nidhi, are yet to be implemented.

On Monday, Siddaramaiah held a pre-budget meeting with all revenue earning departments, including commercial taxes, excise, transport, and stamps and registration. Siddaramaiah’s budget will replace the one Bommai presented in February, which is valid till July 31. The chief minister will present the budget on Friday at 12 pm after which after which the discussion on the budget will begin.

The government is likely to do away with some schemes implemented during the BJP regime, party leaders in the know of the matter said. However, essential schemes are expected to continue, especially the education and health sector schemes for SC, ST, OBC and minorities.

The government is likely to do away with the BJP’s model of making sectoral allocations, and instead have department-wise allocations. As the leader of the Opposition earlier, Siddaramaiah had criticised sectoral allocations, and said it lacked transparency. The government is also expected to hike excise taxes and increase the guidance value of properties to mobilise funds for the guarantees.

North Karnataka

Meanwhile, 13 districts in north Karnataka region tabled a proposal for the overall development of industrial sector alleging that the region is underdeveloped despite being the highest tax payer in the state.

The district industrial associations have urged the government to allot 1,000 acres of land in the 20km radius of every district headquarters, for industries to be established to felicitate thousands of jobs. The proposal of establishing Industrial Development Corridor plan has not been undertaken yet.

Former president of Karnataka Small Scale Industries Association (KSSIA) Basavaraj Javali told HT that despite several representations, no new industrial areas have been developed or advanced infrastructure were provided. Apart from asking 1,000 acre developed land from Karnataka Industrial Area Development Board (KIADB), the association has asked Maharashtra model for the overall growth of the sector.

Javali said, like Maharashtra, Karnataka too can give subsidy as support to the sector. Maharashtra gives 85% subsidy on the cost if established a unit. The cost of entire investment will return in 5-6 years of starting the firm. To encourage the sector, that state providing the open land in 50% discount rate. “We mentioned all these in our proposal tabled to the government,” Javali said.

Javali who is also a council member of KCCI, Hubballi the association, also appealed the pending projects of establishing IT park, industries that manufacture spare parts required in Defence sector and to railways in Belagavi district.

As far as major cities are compared, Belagavi pays second highest tax to the state government after Bengaluru is known for foundry cluster manufacturing. The lathe machine outputs having worldwide market. However, the cluster not added with ten new industries in last ten years due to non-availability of facilities from government for which many investors established lathe machine manufacturing units in neighbouring Goa and Maharashtra which has industrial-friendly system.

The tax, charges of water and electricity is comparetely less in those states compared to Karnataka. “Getting approval to start the industry is very easy in those states through single-window system, while here have to take rounds to piller to post for permission,” said Ashok Patil who established a lathe industry at Shinnolli, a border village in Maharashtra, 13 kms from Belagavi.

Despite minister Jarkiholi who is also the in-charge minister of the district is in favour of bifurcating the district into three, it’s not expected to be announced in the budget as it needs the linguistic and experts’ opinion. Jarkiholi pleaded that Belagavi the geographically largest district, is the state to be bifurcated on administrative reasons.

Like Kalyan Karnataka Development Authority, establishing Kittur Karnataka Development Authority is the much-awaited demand of the people, if so seven districts would be developed like Mysuru and Mangaluru.

Establishing a park like in KRS in Mysuru and Alamatti reservoirs at Hidkal reservoir in Hukkeri taluk in Belagavi is also a long pending demand of north Karnataka. A proposal to set a garden in 400 acres of land with lazer park in either side or the reservoir, botanical garden, water boating in the dam site is also expected to be announced in the budget.

Late BJP minister Umesh Katti represented Hukkeri constituency for the record 8 times, also had tabled a proposal in this regard.