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Feb 07, 2016
BSY Budget: More funds for Mangalore, Udupi districts; Bonanza for temples
Published Date: 10 Mar, 2010 (9:16 PM)

By Team Mangalorean Bangalore

BANGALORE, March 5, 2010: The Bharatiya Janata Party Government in Karnataka has come out with many proposals for development of the coastal region of the State. The 5th budget tabled by the Chief Minister B S Yeddyurappa has been generously allocated to the Udupi Municipal Council with a grant of Rs 25 crore to mark its Platinum Jubilee celebrations.    

Mr Yeddyurappa has provided a grant of Rs 5 crore for establishing the new police commissionerate in Mangalore City and staff and Rs 2 crore for development of the Hubli-Dharwad commissionerate.

He allocated Rs 1 crore has been provided for establishment of a new planetarium at Pilikula near Mangalore and another at Nandi Hills in Chikballapur district, off Bangalore.     

The state budget for 2010-11 allocated Rs 40 crore for shifting of district prisons at Mangalore, Dharwad, Raichur, Kolar, Bidar, Mysore, Davagere, Bellary and Hassan to the outskirts with another Rs 5 crore for modernization of prisons in the state.

The Koderi fishing harbour near Baindoor in Udupi district has been provided with Rs 10 crore for development.

The Tadri port in Uttara Kannada district and the Haldipur in the Western Ghats is planned to be developed to handle 34 million tonnes capacity and 18 lakh tonnes capacity respectively, the chief minister said without indicating the financial outlay or when the development work would be taken up.

The budget also come out with please-all the people of Bangalore apparently with an eye on garnering votes for the BJP in the elections to the Bruhat Bangalore Mahanagara Palike.

The quantity of sales taxed free diesel supply to fishermen of the coastal region has been increased from 75,000 to 85,000 kilolitres while the subsidy of Re 1 per unit of electricity consumed in making ice for preserving fish will be continued, he said.

The budget also proposed that Rs 2.5 crore will be provided for developing insland fisheries for producing 25 crore fish seed during 2010-11.

The Chief Minister has taken the interests of the Backward Class communities like Kammara, Kumbara, Akkasaliga,  Agasa and others engaged in traditional occupations have been given a grant of Rs 20 crore for supporting in economic activities.

The budget allocated Rs 1 crore each for construction of community halls of Daivagna Brahmins of Uttara Kannada district and Bhalavallikar community of Manipal in Udupi district.

In addition, a Rs 3 crore grant has been given for the establishment of ``Kumbakala Abhivruddhi Mandali” to ensure that the Kumbars were given training to provide new designs and skills in the traditional pottery industry and also to provide good marketing facilities.

Chief Minister B S Yeddyurappa has provided allocations to BBMP in a big way-Rs 18,872 crores over a period of three years. In the ensuing financial year, the BBMP will spend Rs 3000 crores for improvements to city roads, footpaths and construction of overbridges and underbridges and the Bangalore Development Authority will spend Rs 1000 crores for construction of multi-storeyed vehicle parking centres.

Presenting his 5th budget in a row, the Chief Minister said his budget is a growth-oriented. The budget presents a surplus of Rs. 500.49 crores on the revenue account while the fiscal deficit is estimated at Rs 9708.46 crores which is 0.15 per cent and 2.96 percent of the gross state domestic product (GSDP). The Budget also indicates a big increase in the State’s annual plan size-from Rs 25,967 crores (revised estimates for 2009-10) to Rs 31,000 crores (budget estimates for 2010-11). Further the total budget outlay has been increased to Rs 70,063 crores from Rs 60,051 crores last year.
”Like the previous budgets, this budget is growth oriented and people friendly and rural development centred. We have done our best under the circumstances and socio-economic development of the oppressed classes and overall improvement of infrastructure in rural and urban areas are our other priorities. The focus of my all four budgets is that I have maintained uniformity in priorities. The financial position of Karnataka is more sound compared to other states”, he said. 

Mr Yeddyurappa said the state’s own tax revenue is more than 10 per cent of the Gross State Domestic Product (GSDP), which is the highest in the entire country. The average of all other states is below six per cent. Starting from the year 2004-05 upto to the year 2007-08, Karnataka has maintained its fiscal deficit within the limit of three per cent of the GSDP every year, as stipulated in the Fiscal Responsibility Act. The state has been able to maintain a revenue surplus by restricting revenue expenditure within the limits of
revenue receipts every year.   

The major budget proposals are:

  1. Up to 50% reservation to women in the panchayat raj institutions to further strengthen the role of women by amending the Panchayat Raj Act.
  2. In another significant move, Mr Yeddyurappa has announced the government’s resolve to ensure education to all children upto standard X.
  3. New university will be set up as Vijayanagar University at Bellary in the "kingdom” of mining lords.
  4. New agricultural university in Shimoga, home town of Mr Yeddyurappa.
  5. Veterinary college in the name of Sangh Parivar’s ideologue Sri Bhaurao Deshpande is to be established at Athani in Belgaum district.
  6. Budget allocated Rs 10 crore for establishing a super-speciality hospital at the Vijayanagar Institute of Medical Sciences in Bellary with PPP mode.
  7. The Kidwai Institute of Oncology gets Rs 5 crore for establishing a branch at Hubli to provide cancer treatment facilities.
  8. The recently established universities at Tumkur and Davangere along with the Women’s university at Bijapur will be given a grant of Rs 10 crore each for development of infrastructure facilities.
  9. The Kannada university at Hampi will be given a grant of Rs 5 crore. The Karnataka university at Dharwad is provided a grant of Rs 4 crore for research activities of the DNA Diagnostic Institute.
  10. A grant of Rs 5 crore is also provided for the establishment of Sanskrit university during 2010-11.
  11. The Gulbarga university will be provided a grant of Rs 1 crore for establishing a centre for Pali language, while the grant of National Law School University of India will be enhanced to Rs 1 crore.
  12. Law University established at Hubli has been allocated Rs 10 crore for creation of infrastructure facilities.
  13. The Vishveswaraiah Technological University at Belgaum has been given a special grant of Rs 5 crore for establishing a post-graduate study centre in urban development studies.
  14. A movement “jalasiri” would be started with an expenditure target of Rs 500 crore for building at least two lakh water-harvesting structures in the State. A special award of Rs five lakh would be given to best gram panchayat (GP) in every taluks for performance in building water-harvesting structures. The government mulled over making sprinkler irrigation system compulsory with a view to protect ground water and economising the consumption of power.
  15. “Antharaganga micro-irrigation Corporation would be set up with an outlay of Rs 100 crore to provide assistance and technology to farmers”.
  16. The budget has proposed to extend ‘Bhoochetana’ programme from six to 15 districts to cover 12.5 lakh hectares to increase soil fertility by providing Rs. 15 crore to Krishi Vigyan Kendras. It allocated Rs. 15 crore for holding Krishi Melas in districts every year.
  17. The budget proposed to set up a Karnataka Mango Board with a provision of Rs.10 crore. Apart from facilitating establishment of improved mango markets and processing facilities in partnership with the private sector, the Board would also provide necessary improved technical assistance to mango-growers, the Chief Minister said.

Bonanza for Maths and temples in BSY budget

BANGLAORE:  In continuation of his Government’s patronage to Hindu temples and religious institutions reflected in the last budget, Chief Minister B.S. Yeddyurappa on Friday allocated several hundreds of crores of rupees to maths and temples of different denominations.

In his budget presented in the Karnataka Legislative Assembly on Friday, Chief Minister B  S Yeddyurappa has conceded the demands of various maths. The major outlays for various maths is as follows:

  1. The Mata Amritanandamayi Institutions, which came forward to build houses for the flood victims, will be provided a 15 acre land and a grant of Rs 5 crore for establishing a super-speciality hospital at Kengeri in Bangalore.
  2. The Adichunchangiri Kshethra of Vokkaligas has been allocated a grant of Rs 5 crore for development of infrastructure facilities in Nagamangala taluk
  3. Rs 10 crore allocated for development works of Yediyur Siddalingeshwara Kshethra
  4. Rs 5 crore for envisaged for construction of guest houses at Tirupati
  5. Rs 5 crore for construction of a guest house at Shabarimalai
  6. Rs 3 crore aid to pilgrims visiting Manasa Sarovara
  7. Rs 2 crore for development of Dattatreya Peetha at Devalagangapura in Gulbarga district
  8. Rs 3 crore for development of Sri Someshwar Kshethra at Rambhapuri
  9. Rs 1 crore for the development of Harihapura Kshethra in Chikmagalur district
  10. Rs 10 crore for the development works of Kagrinele
  11. Rs 5 crore for completing the works at Shravanabelagola Bahubali temple complex
  12. Rs 5 crore for completing the Kudalasangama development works; Rs 5 crore for completing the remaining works of Basava Kalyana
  13. Grant of Rs 25 lakh each for maintenance of government guest houses outside the state like Mantralaya in Andhra Pradesh, Kashi and Haridwara in Uttara Pradesh.
  14. An amount of Rs 5 crore for constructing a Haj Bhavan in Bangalore; Rs 10 crore for construction of Shadi Mahals/Kalyana Mantapas
  15. Rs 3 crore for providing special language training to enable minority students to change their medium of instruction for higher education
  16. Rs 10 crore for skill development training in various professions through Minorities Development Corporation
  17. Rs 1 crore for the development of Tavakkal Mastan Darga in Bangalore and Mardan-e-Ghaib near Shivanasamudra.

The entire Opposition criticised the budget for allocation of funds for temples in the budget when a large number of people affected from north Karnataka floods have no houses, electricity and drinking water.

Karnataka hikes gratuity limit to Rs six lakh

BANGALORE: In a bonanza to its employees, Karnataka Government today enhanced the amount of gratuity admissible on superannuation to Rs six lakh from Rs three lakh. In another relief in the 2010-11 budget, Chief Minister B S Yeddyurappa restored uniform allowance to D group employees which was withdrawn a few years ago.

The government also simplified the process of transfer giving full powers to heads of departments and district level officers in respect of tansfers of group C and D employees. Transfer of Group A and B employees will be ordered at the government level, Mr Yeddyurappa said.

Action will be taken to deploy surplus employees working in various department and in some public sector undertakings to compulsorily to vacant positions, he said.

He also announced enhancement in the quantity of sales tax free diesel provided to fishermen in coastal areas to 85,000 kilo litres from 75,000 kilolitres. The present subsidy of Re one per unit of electricity being used in making ice for preserving fish will continue, he said. 

KASSIA welcomes budget

The State Budget announced by  B.S.Yeddyurappa, Chief Minister & Finance Minister of  Karnataka has several positive elements at a time when negative environmental forces are challenging the growth of the economy of Karnataka analysed the president of the Karnataka State Small Industries Association (KASSIA) Mr. M.C. Dinesh

Making an observation on the budget Mr. M.C. Dinesh said that the  allocation of Rs.500 crores for Commerce & Industrial Associations is a welcome move. Setting up of Industrial Export Centre at Mysore and the provisional approval given to two major industrial giants to establish steel plants will help industrialization and will help in formation of new MSME units.

Government’s plan to create 50000 acres land bank by March 2010 is a positive move and 12,000 acres land for IT park near International Airport is also a welcome step in development of industries, he said.

Similarly the approval  to set up Automobile, Aerospace and Electronic Hardware Industries with a total investment of Rs.1.9 lakh crores to Karnataka is a welcome gesture.

The Global Investors Meet planned in June 2010 to attract more and more investors from India and abroad will also help in industrial development of the State.

Reservation of 10% of KIADB land in district levels for establishing Garment industries, Textile industries and Agricultural products industries will create more employment in rural areas and help in balanced industrial growth.

Increase in Turnover limit for VAT registration to Rs.5 lakhs will really help micro Industries Mr. Dinesh said.

Increase in Turnover limit for compulsory audit to Rs.60 lakhs, and composition tax turnover limit Rs.25 lakhs will also help industrial community. He said the proposed e-filing of tax returns and online tax payment is also a welcome move

Provision of Rs.204 crores for infrastructural development for tourism sector and permission to acquire 5 acres agricultural land to set up Hotel Industry at selected 100 tourism centres and also VAT exemption for 3 years will help in more employment and make the tourism sector a very vibrant.

Small Industries are disappointed that there is an increase of 1% of VAT which will definitely affect the MSME sector adversely and leads to high inflation, Mr Dinesh evaluated.

On the whole the Budget is to be considered progressive relevant to the circumstances and designed to meet the challenges of time.

FKCCI Hails budget

Federation of Karnataka Chambers of Commerce and Industry (FKCCI) president J Crasta welcomed the Karnataka State Budget for the year 2010-11. Mr J.Crasta, President,  FKCCI,  has termed it a progressive and vision oriented budget. 

Mr Crasta felt that the emphasis given to Agriculture, Education, Backward area development, infrastructure and urban development is very well thought of action and is confident that it would boost the State’s Development in the medium and long terms.  FKCCI also welcomed the importance given to Tourism development.

However, while appreciating all these development oriented action, Mr Crasta has cautioned that the allocations made in these sectors should be properly utilized to derive the needed development.

The increase in tax rates from 4% to 5% and 12.5% to 13.5% appears to be a necessary evil. Although the increase in rate, will affect the common man, since prices will consequently increase, FKCCI opines that  the State Government had no option but to do so in order to do the fiscal balancing

FKCCI is happy that its suggestions regarding  increase in registration limits for dealers under both VAT scheme and the composition scheme are announced in the budget.  

FKCCI is also glad that its suggestion to introduce e-filing has been accepted and this is bound to benefit a number of dealers across the State.

FKCCI welcomes reduction of VAT on masala powder mixtures, generators and railway sleepers and also the reduction in some of the stamp duties as was suggested by it.

However, the increase in luxury tax for hotel rooms and  steep increase in the Road tax for industrial vehicles, is a disturbing factor for the growth of Tourism and Industry. FKCCI wants the Government to reconsider them.

Previous report

Karnataka Budget: Focus on fresh taxes, subsidised loans for farmers

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Rocky, USA Mar 6, 2010
Vinay brings up a good point probably without knowing the tax structure.

upto 60 crores in budget goes to Temples- Sounds bad or terrible in a secular society!

The temples are either private or are run by endowments( GOVT). They take out 400- 600 crores per year from temple coffers.

Guess what - 60 crores back- sounds like a bargain for the Government!

Temples and Mosques are under the non profit religious and non taxable category. So they can recieve and Keep. they just have to file tax returns annually.

The money the Goevrnment gets from temples is not yearmarked for any cause, hence goes for every program - Unlike the Lottery in the US, goes for education.
Vinay M, India Mar 6, 2010
What is the point in hiking VAT and pretty much all other taxes if the taxpayers money is going to go to temples and mutts? These institutes have plenty of cash and donors. Why should my taxes go to them? This government seems to be remote controlled by mutts and will bankrupt the state one day.
SHENOY R, India Mar 5, 2010
Udupi town is the Citadel of BJP for a long time. He is returning the favour for sticking with BJP. I remember in the late sixties/early seventies when the whole countrywas voting for Congress, Udupi had voted for Jana Sangh for its muncipality. It won the award for the best muncilaity in Karnataka during the late Dev Raj Urs time. Mr Somashekhar Bhat was the able muncipality chairman.

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