The Hindu : Front Page : Surplus budget without additional taxes for State

Online edition of India's National Newspaper
Tuesday, Mar 21, 2006

Front Page

Front Page

Surplus budget without additional taxes for State

Special Correspondent

Farm loans at lowest-ever four per cent interest; focus on urban infrastructure; allocations for several new welfare schemes

FOR THE FIRST TIME: Deputy Chief Minister and Finance Minister B.S. Yediyurappa arriving at the Vidhana Soudha to present his maiden budget on Monday. — Photo: V. Sreenivasa Murthy

Bangalore: The Janata Dal (Secular)-Bharatiya Janata Party Government on Monday presented what could be described a populist budget without any additional taxes and announcing allocations for several new and innovative welfare schemes.

The new coalition Government, which took charge over a month ago, has exhibited its concern for farmers by bringing down the interest rate on farm loans.

The annual budget, as assured by Chief Minister H.D. Kumaraswamy and Deputy Chief Minister and Finance Minister B.S. Yediyurappa, has earmarked adequate funds for the programmes contained in the Common Minimum Programme released a few days ago.

Cooperative loans

Subsidised cooperative loans will also be made available to weavers and fishermen and the upper limit on such loans will be Rs. 3 lakhs. Further, the Government will appeal to the Union Government and the Reserve Bank of India to direct nationalised banks to extend farm loans and the difference in the interest will be borne by itself (State Government).

Mr. Yediyurappa presented a budget with a surplus of Rs. 27.45 crores. The surplus in the revenue account is Rs. 1,534.54 crores while the capital account is marked by a deficit of Rs. 1,507.07 crores resulting in the overall surplus being reduced to Rs. 27.47 crores and a closing balance of Rs. 79.04 crores.

Mr. Yediyurappa and a team of Finance Department officials had worked for over three weeks in preparing the budget. He said, "This is a light budget as there are no additional tax burdens and this is a rich budget as it is full of resources."

A major part of the budget has been dedicated to agriculture, rural development and irrigation, although efforts have been made to take care of the urban sector, particularly in solving the infrastructure problems of Bangalore. The tax burden on coffee (other than firms and companies which manage plantations) has been slashed from 40 per cent to 30 per cent.

Financial stability

Mr. Yediyurappa said fiscal correction over the last few years had assured financial stability in the State. The revenue targets set for most departments had been surpassed and in particular Excise, which was supposed to net Rs. 2,997 crores, is now expected to net Rs. 3,375 crores. The Motor Vehicles Department is expected to garner Rs. 1,218 crores up from Rs. 1,180 crores.

Bhagya Lakshmi scheme

Among the several welfare schemes announced by the Finance Minister is the Bhagya Lakshmi scheme to prevent female infanticide. Under the scheme, the Government will deposit Rs. 10,000 each in the name of girl child born on or after April 1, 2006 in a below poverty line family. On attaining the age of 18, the girl child concerned could draw the money along with the interest accrued on it. The Government has estimated that it will cost the exchequer Rs. 234 crores annually and the number of beneficiaries will be restricted to two girls per below poverty line family.

Printer friendly page
Send this article to Friends by E-Mail