B.S. Yediyurappa

BANGALORE: The Government is expected to give a big boost to tourism in the budget to be placed before the Legislative Assembly on Friday. The State is all set to compete with the neighbouring States of Goa and Kerala in wooing both local and foreign tourists.

Sources in the Secretariat told The Hindu that that the Government has plans to double the allocation made to the tourism sector — from Rs. 50 crore allocated this current year to over Rs. 100 crore for the coming financial year. Until last year, the tourism sector in the State had remained neglected with a measly budgetary allocation resulting in the poor maintenance of tourism spots and lack of infrastructure.

The State would be divided into at least four regions for the purpose of developing tourism. These are the coastal belt, the Uttara Kannada region which is rich in flora and fauna, the Hampi region inclusive of the Badami caves, Aihole and Pattadakal, and the Mysore region inclusive of Bangalore. The Government has plans to draw the attention of private tourism operators and hotels and a beginning would be made to elicit their views on the ways and means of improving the tourism infrastructure.

Loan waiver

It was mentioned that the budget, as promised by Chief Minister H.D. Kumaraswamy and Deputy Chief Minister B.S. Yediyurappa, would contain specific details on the farm loan waiver. It would, however, not be a general waiver of all farm loans and would, in all likelihood, have a cap of Rs. 20,000. The small farm loans obtained during the year would be waived along with the interest. As such, farmers across the State have stopped repaying all farm loans over the past three months. On the other hand, fresh loans are not being given to farmers.

Incidentally, it was Mr. Yediyurappa (in the last budget) who had announced a subsidised interest rate of four per cent on all farm loans. This prompted the Union Government to reduce the interest rate on farm loans to seven per cent resulting in the State Government having to pay up the balance of three per cent. This year, the Government has so far extended farm loans of Rs. 2,900 crore and a sizeable part of this is likely to be waived, the sources said.

Meanwhile, Mr. Yediyurappa with reference to media reports on the budgetary achievements during the year said that until February last the planned expenditure had touched 71 per cent. He said he was confident that by the close of the financial year it would be over 90 per cent. The total of plan and non-plan expenditure so far this year was Rs. 23,969 crore compared to Rs. 19,733 crore during the same period last year.

On the revenue front, Mr Yediyurappa said the total collection would be 108 per cent and the achievement so far was 92.17 per cent. It will be one of the best achievements in over four years, and the State is all set to create a new record in revenue mobilisation.

The revenue collected so far compared to the target set in some of the sectors this year is — commercial taxes (89.59 per cent), excise (93.28 per cent), motor vehicle taxes (88.56 per cent), stamps and registrations (110 per cent) and land revenue (95.87 per cent). The revenue collected so far was Rs. 22,514.19 crore compared to Rs. 20,751.73 crore during the same period last year.

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