#KarnatakaBudget2023 : Chief Minister Siddaramaiah Presents His Seventh Budget ; Fulfills The Five Guarantees Made Before Polls

Picture : Twitter/ ANI

Karnataka Chief Minister Siddaramaiah, who also holds the finance portfolio presented the state Budget for 2023-24.

The Congress government which recently came to power in the southern state has increased the Budget size from Rs 265,720 crore in 2022-23 to Rs 327,747 crore in 2023-24, a Rs 62,027 crore increase with a growth rate of 23 per cent.

As per report by ANI, Of the total expenditure, revenue expenditure is estimated at Rs 2,50,933 crore and capital expenditure at Rs 54,374 crore, an increase of 23 per cent and 16 per cent, respectively.

This is Siddaramaiah’s seventh Budget as a Chief Minister, having presented six during his tenure as Karnataka CM from 2013 to 2018.

The state government termed this Budget to be their ‘Guarantee Budget’ and asserted that it fulfils all the five key promises it made to the people ahead of the Assembly polls. For the implementation of those pre-poll promises, a total of Rs 35,410 crore has been allocated in today’s Budget.

“Equal distribution of wealth among all sections of the society is as important as attracting capital investment and creating more employment for the economic progress of the state. Hence, our Government is implementing these guarantee schemes, which are not just the freebies provided to the people but are necessities to distribute the fruits of economic development among poor and the depressed,” a press release from the CMO said.

The Congress party’s five “guarantees” mentioned in the Manifesto were 200 units of free power to all; Rs 2,000 monthly assistance to the woman head of every family; 10 kg of rice free to all members of a BPL family; Rs 3,000 every month for graduate youth; Rs 1,500 for diploma holders (age group of 18-25) for two years; and free travel in government buses for women.

Siddaramaiah today said funds worth Rs 17,500 crore has been earmarked to provide Rs 2,000 monthly to women.

“Gruha Lakshmi scheme intends to bring relief to public from the uncontrolled price rise by direct cash transfer of Rs 2,000 per month to women,” CM said, according to a press note.

“The scheme will help in poverty alleviation, women empowerment, improvement in health and nutrition of mother and children and economic self-reliance of women within the household. The direct cash transfer will not only boost the local economy through multiplier effects, but also help to create more employment.”

About 1.30 crore women are expected to benefit from the scheme. The enrolment of beneficiaries will be started from July 16 and direct cash transfer will be initiated from August 15 – Independence Day.

For free electricity upto Rs 200 units under Gruha Jyothi scheme, a total of Rs 9,000 crore has been allocated.

Under Annabhagya scheme, a total of 10 kg rice will be provided every month.

“Our government will provide 5 kg of rice in addition to the 5 kg of rice provided by the central government. This project will make Karnataka a hunger free state and will help to eradicate malnutrition,” CM said.

An allocation of Rs 10,275 crore has been provided for the additional rice scheme, benefitting about 4.4 crore people.

“As the Food Corporation of India which is under the control of Central Govt has abruptly decided to stop sale of food grains to the State, our government is looking for alternative ways to get the food grains. Hence, cash equivalent of the cost of 5 kg of food grains will be transferred to the card holder’s account from the month of July itself till the procurement of food grains is completed,” CM explained as there has been a friction between the state and the Centre regarding the grain allocation.

Further, on the taxation front, the state government proposed to increase Additional Excise Duty on Indian Made Liquor (IML) by 20 percent. For beer, the Additional Excise Duty will be increased from 175 per cent to 185 per cent, a 10 percentage points increase.

The state government maintains that the price of liquor in the State would be lower compared to the neighbouring States despite the tax, but it did not give any rationale behind the argument.