For the first time in decades, Karnataka got a deficit budget. Chief Minister BS Yediyurappa, who also holds the Finance portfolio, on Monday tabled a revenue deficit budget estimated at Rs15,133.60 crore for year 2021-22.
The budget for the fiscal year 2021-22 has a total outlay of Rs2,46,207 crore, which is marginally more than the previous year’s budget size.
The revenue deficit was attributed to the pandemic. Despite increased borrowings and negative revenue receipts that are expected to be lower than 2020-21, Yediyurappa chose not to increase excise and fuel cess.
The budget showed a contraction of Karnataka’s GSDP by 2.6% in 2020-21. While agriculture saw 6.4% growth, the industrial sector and service sector saw contraction by 5.1% and 3.1% respectively.
With the budget being presented on Women’s Day, the CM made a special announcement of women empowerment schemes and plans worth Rs 37,188 crore. While total Rs31,028 crore has been allocated to agri and allied sectors, Rs62,150 crore has been set aside for the welfare sector that involves health, education, backward classes development.
To kickstart a sluggish economy, a whopping Rs52,529 crore was allocated for the economic growth sector — industries, IT, infrastructure, mobility etc. Bengaluru got special focus receiving a dedicated allocation of Rs7,795 crore for its comprehensive development.