The Hindu : Karnataka / Bangalore News : State says financial position ‘sound'

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Tuesday, Dec 07, 2010
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Karnataka

Karnataka - Bangalore

State says financial position ‘sound'

Special correspondent

Per capita Plan Expenditure of Karnataka is one of the highest in the country
As of date, revenue receipts are Rs. 34,259 cr.

Bangalore: The State Government on Monday said the financial position of Karnataka was “sound and buoyant” and as of date the revenue receipts were Rs. 34,259 crore during the current financial year compared with Rs 28,522 crore during the corresponding period last year, thus recording an increase of nearly 20.1 per cent .

The per capita Plan Expenditure of Karnataka is one of the highest in the country. It has increased from Rs. 1,139 during 1999-2004 to Rs. 3,976 during 2008-2011. In year 2010-11, the Plan Expenditure from the Budget is expected to be Rs. 4,500 per capita. The increase in the past 11 years has been 15 per cent a year.

Of the total revenue receipts, collection of the State's own tax revenues has been more buoyant with a 29.4 per cent increase. The collection during April-November 2010 is Rs. 24,001 crore compared with Rs. 18,548 crore during the same period in 2009-10. Commercial Taxes contribute almost 62 per cent of the State's own tax revenues and the situation in Karnataka is stated to be much better than the other southern States . Up to October 2010, the Commercial Tax collection was higher by 31 per cent as compared to last year.

With reference to central assistance to Karnataka the in the form of State's share in central taxes, the grants remained stagnant, the government claims. As compared to Rs. 8,562 crore received during April-November 2009, the receipts during the same period in this year have been Rs. 8,546 crore.

It said the tax revenues of the State increased by more than three times from average of Rs. 12,602 crore during 1999-2004 to Rs. 39,342 crore during 2008-2011. During 2010-11, the tax revenues are expected to be Rs. 45,288 crore.

On debt financing, it said during 1999-2004, 23 per cent of the State's expenditure was financed from the borrowings while in 2008-2011, the dependence on the borrowings to finance the expenditure has been brought down to 16 per cent. Similarly , Plan Expenditure from the State Budget has increased by 13.2 per cent from Rs. 11,115 crore in April-November 2009 to Rs. 12,582 crore in April-November 2010. The non-plan expenditure has been regulated so that more funds can be provided for the development schemes. The increase in non-plan expenditure has been 6.8 per cent from Rs. 21,237 crore in April-November 2009 to Rs. 22,673 crore in April-November 2010. The major beneficiary oriented schemes of the State Government have a total budgeted outlay of Rs 6,270 crore for 2010-11

From the year 2004-05, with the Fiscal Responsibility Act in force, the Government kept the fiscal deficit within the 3 per cent norm.

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