The Hindu : Karnataka News : Budget passed in Assembly, Council

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Sunday, Aug 01, 2004

Karnataka

Karnataka

Budget passed in Assembly, Council

By Our Special Correspondent

BANGALORE, JULY 31. The Karnataka Appropriation Bill, 2004, moved by the Deputy Chief Minister and Finance Minister, Siddaramaiah, was passed in the Legislative Assembly on Friday amid a walkout by the Bharatiya Janata Party. In the Legislative Council, the Budget estimates were unanimously passed after a protracted debate.

Several other Bills were also passed quickly in the Assembly. They included the Karnataka Taxation Law (Second Amendment) Bill, the Karnataka Excise (Amendment) Bill, the Karnataka Motor Vehicles Taxation (Second Amendment) Bill and the Karnataka Special Tax on Entry of Certain Goods Bill.

Dues to contractors

Earlier, Mr. Siddaramaiah told J.C. Madhuswamy that the dues to the contractors engaged by the Public Works and Irrigation departments were about Rs. 480 crores and payment would be made as early as possible. The Government could, however, not set a time schedule for clearing the pending bills and it was subject to the availability of funds.

Referring to the demands of coffee and sugarcane growers who had been seeking the Government's intervention, he said he and the Chief Minister, N. Dharam Singh, would hold discussions with them separately, after the legislature session.

On B.C. Patil's demand to restore the entertainment tax on non-Kannada films to 70 per cent, which was proposed to be brought down, Mr. Siddaramaiah said the Government would announce a new film policy. However, in most other States, the entertainment tax on films in languages other than that of the particular State, was between 30 and 40 per cent, and, therefore, the tax was reduced to 40 per cent in Karnataka, he added.

In Council

Replying to the discussion on the Budget in the Legislative Council, Mr. Siddaramaiah told the House that the Budget estimates incorporated schemes and programmes envisaged in the Common Minimum Programme of the coalition government.

Referring to farm loans and interest waiver, he said that the objective was to give a fillip to cooperative banks and prevent farmers from falling into a debt trap. It was impossible to extend all facilities promised to farmers in one go. The Government would fulfil its promises in time.

Crop insurance

On crop insurance, Mr. Siddaramaiah said that the General Insurance Company (GIC) would implement the scheme. The Government would consider extending relief on the basis of the GIC report. It had realised the need to enforce the scheme from the gram panchayat level, he added.

He asserted that he had not criticised the previous government in his Budget speech, and that there was no need for him to publish a White Paper on the State's finances as demanded by the Opposition.

The new excise policy would prevent sale of "seconds liquor," help make available arrack of good quality and bring in a revenue of Rs. 500 crores.

Defending taxation of certain commodities, he said it would not affect the poor.

Fiscal stability

Earlier, participating in the discussion, B.K. Chandrashekar (Congress) said that it was impossible to achieve any development with out achieving `fiscal consolidation." He suggested that sustainable investment should be made for developing rural markets.

Other Bills

The State Legislative Council passed five Bills, including the Karnataka Appropriation (No.1) Bill 2004, on Friday. The other Bills which were passed were the Karnataka Taxation Laws (Second Amendment) Bill, 2004, the Karnataka Excise (Amendment) Bill, 2004, the Karnataka Motor Vehicle Taxation (Second Amendment) Bill, 2004, and the Karnataka Special Tax on Entry of Certain Goods.

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