The Hindu : Krishna set to present pro-people Budget

Online edition of India's National Newspaper
Tuesday, Feb 03, 2004

Karnataka

Karnataka

Krishna set to present pro-people Budget

By Nagesh Prabhu

BANGALORE, FEB. 2. The Chief Minister, S.M. Krishna, is all set to present a people-friendly Budget on February 5. The Budget is likely to have several concessions for farmers and weaker sections of society.

The Chief Minister and his Cabinet colleagues are holding discussions in preparation for tabling the Budget. This year, the Government is unlikely to levy any fresh taxes or go for any new measures to mobilise revenue as it is going to face the electorate.

The Government has, however, imposed cess on a few commodities for taking up infrastructure projects in the State. The Government has withdrawn its decision to impose fresh cess on petrol, diesel and other essential commodities. Since elections are round the corner, the Government is expected to announce more schemes for the welfare of farmers and development of backward regions. The Government has announced a number of special packages to appease different sections of society and regions. It has also announced special packages worth Rs. 4.700 crores.

Though Opposition parties termed these packages as election year gimmicks, the Government has said that some backward districts deserved special treatment and incentives.

A sum of Rs. 300 crores was given to Mandya (Rs. 100 crores a year for three years), Rs. 60 crores for Malnad, Rs. 880 crores for drought-affected farmers, Rs. 107 crores for Kodagu, and Rs. 3,300 crores for Bellary.

The Government has also come out with a special package for the over three lakh weavers in the State.

There is also a view that the Government has responded to the demands of all regions and sections on all occasions.

When naxalite activities were unearthed in the Malnad region, the Government responded quickly with a Rs. 60-crore package to fulfil the demands of the tribal people.

To mitigate the crisis faced by the drought-hit farmers, the Government announced the Rs. 880-crore package, involving waiver of interest on loans and power tariff.

The Government has mobilised funds from the Housing and Urban Development Corporation and National Bank for Agriculture and Rural Development to provide for these packages.

The Government has increased dearness allowances from the existing 55 per cent of the basic pay to 59 per cent with effect from July 1, 2003.

The Karnataka State Government Employees Association has agreed to the recovery of entire arrears of dearness allowances from July 2003 to December 2003 as contribution to calamity relief in view of the drought in the State.

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