The Hindu : Karnataka / Bangalore News : Fiscal position on the right track: Siddaramaiah

Online edition of India's National Newspaper
Thursday, Aug 04, 2005

Karnataka

Karnataka - Bangalore

Fiscal position on the right track: Siddaramaiah

Special Correspondent

27 p.c. growth in tax revenue registered

BANGALORE: The State has registered a growth rate of 27 per cent in tax revenue in the first four months of the current fiscal year, which is the highest among the various States.

The Deputy Chief Minister, Siddaramaiah, said in his reply to the debate on Supplementary Estimates (2005-06) in the Legislative Assembly on Wednesday that the fiscal position of the Government was on the right track and the tax revenue was expected to cross Rs. 15,500 crores in the current year. Revenue from commercial taxes had been targeted at Rs. 12,500 crores and excise revenue at Rs. 3,000 crores. The House passed the Supplementary Estimates by voice vote.

Revenue under the Value Added Tax (VAT) in the first four months of the year had increased by 27 per cent compared with the corresponding period of last year when the State had its own commercial tax administration. There was no fiscal indiscipline whatsoever. There was no cut in planned expenditure and the surplus budget had been maintained for the second consecutive year. The Plan size of the State had been placed at Rs. 13,555 crores and it was the second highest in the country. The fiscal deficit of 2.8 per cent was below the norm of three per cent, he said.

Development schemes

Mr. Siddaramaiah said sufficient funds had been released for implementing development schemes meant for farmers, weavers, fishermen and people belonging to the backward classes. On account of inadequate provision for implementing the scheme of 50 per cent subsidy to small and medium farmers for supply of seeds, Rs. 20 crores was included in the demand. Similarly, Rs. 7.80 crores had been released for the development of Mangalore airport, Rs. 50 lakhs for opening 10 post-matric hostels for women, Rs. 30 crores for the Swachha Gram programme and Rs. 6.38 crores for payment of salaries of employees of government aided Industrial Training Institutes.

Co-op. sugar units

Funds had also been released for the revival of sick cooperative sugar units and providing infrastructure to government medical colleges.

A sum of Rs. 22 crores had been released under the Calamity Relief Fund. There was no shortage of funds for taking up relief measures in flood-affected areas, he said.

Demands such as increase in pension for the aged, handicapped and that in the salary of anganawadi assistants and funds for construction of houses under the Ashraya scheme were under the review of the Finance Department, he said.

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