The Hindu Business Line : No new taxes proposed in Karnataka budget

New Delhi, March 10 The Karnataka Budget for 2008-09 proposes no new taxes, leaving a closing balance of an estimated Rs 92.27 crore for the next fiscal.

The State’s Budget was introduced in Parliament by the Union Finance Minister, Mr P. Chidambaram, on Monday. Besides placing the annual financial statement for 2008-09 before the Lok Sabha, Mr Chidambaram also sought a “vote on account”, for the first six months of the financial year 2008-09, for Rs 29,027.30 crore.

Karnataka has been under the President’s rule since November 20, 2007 after the BJP Government-headed by Mr B.S.Yeddyurappa failed to prove majority on the floor of the State legislature. Indications are that Karnataka may go in for Assembly polls by end-May 2008. This is the second time the State’s Budget is being tabled in Parliament; the first was in 1971.

For 2008-09, the revenue receipts have been estimated at Rs 46,188.70 crore. The State’s share of Central taxes, duties and grants-in-aid from the Centre adds up to Rs 12,811.12 crore. The revenue expenditure is projected at Rs 43,216.05 crore, leaving a revenue surplus of Rs 2,972.65 crore.

On the capital account, the receipts are estimated at Rs 9,273.45 crore and the expenditure at Rs 13,326.09 crore. After accounting for transactions in the public account and the opening balance, the closing balance in 2008-09 is estimated at Rs 92.27 crore. These estimates reflect a revenue surplus of 1.19 per cent and a fiscal deficit of 2.84 per cent of Gross State Domestic Product.

The State Plan outlay for 2008-09 is estimated at Rs 21,751 crore, higher than the current year’s outlay of Rs 17,782.56 crore. The central assistance in the form of grants to the State plan has been projected at Rs 2,058.04 crore and the State’s own resources, including loan from various sources are projected at Rs 19,693 crore.

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