Zero tax hike, Kashi Yatra subsidy, Rs 1000 crore for Mekedatu: Karnataka Budget 2022 highlights

Karnataka's state budget for the fiscal year 2022-2023 included, among other major points, zero tax hike in any sector, Rs 5000 subsidy per person for Kashi Yatra, and an allowance of Rs 1000 crore for the Mekedetu project across the Cauvery river.

Bengaluru:Karnataka Chief Minister Basavaraj Bommai has proposed no increase in taxes in the Budget 2022-23 presented by him in the state Legislative Assembly on Friday. In his maiden budget speech the Chief Minister, who also holds the Finance portfolio of the state, expressed his government's commitment for the implementation of the Mekedatu project across river Cauvery, which neighboring Tamil Nadu is opposed to, and has provided Rs 1,000 crore for it this year.

With just a year left for the Assembly polls in the state, this is most likely to be the last full-fledged budget ahead of the elections experts say.

Revenue collection to increase:

Revenue collection that started in a sluggish manner due to the second wave of the COVID-19 pandemic at the start of the year, picked up later in the year, the Chief Minister said.

Due to this phenomenon, the share of central taxes has been increased in the revised estimates of the Union Budget to Rs 27,145 crore from Rs 24,273 crore. The Union Budget for 2022-23 has estimated Rs 29,783 crore as tax devolution to Karnataka.

Rs 5,000 subsidy for Kashi Yatra:

As far as religious and cultural activities are concerned, the honourary allowance for priests in temples run by the Muzarai department has been increased to Rs 60,000 from an earlier Rs 48,000 to ‘help out the Archakaru, Agamikaru, and Employees of endowment temples’. A subsidy of Rs 5,000 per person will be provided by the state to 30,000 pilgrims undertaking the Kashi Yatra from Karnataka.

Coaching for NEET exams:

Amid the opposition to NEET (National Eligibility cum Entrance Test) exam in Karnataka, the state government today announced coaching for NEET exams. CM said that to provide opportunities for poor children to enter medical colleges, the state will provide coaching for NEET exams in all taluks. Meanwhile, Medical students’ death in Ukraine triggers growing opposition to NEET in Karnataka. Congress, JDS leaders are opposing NEET in the state. Former Chief Minister and JDS leader HD Kumaraswamy had declared that "If the JDS comes to power we will take resolution against the NEET."

GST collections increased:

"The GST collections have increased in 2021-22 compared to the previous year, showing we are on the road to recovery,” Bommai said.

The Union Government has given Rs 18,109 crore as GST loan in lieu of GST Compensation in addition to Rs 7,158 crore GST compensation, which has helped us not only to effectively manage COVID-19 and its related expenses but also ensure that all developmental works and programs were funded adequately, providing impetus to growth.

Will not put extra burden:

"The economy in 2021-21, is on the road to recovery. In these circumstances, I am not willing to put an extra burden of additional taxes on the common man", Bommai said.

All tax departments to perform:

Presenting the budget in the legislative assembly of Vidhan Soudha, Bommai explained that the tax collection targets will be achieved by ensuring all the tax departments perform better.

No increase in petrol rates:

The Chief Minister also assured that he is not increasing the petrol and diesel rates.

Realizing the difficulties caused by the second and third wave of COVID-19 pandemic in 2021-22, state sales tax on petrol and diesel was reduced in November 2021. Because of which the petrol and diesel rates had come down by Rs 7 per liter, he quoted.

Mekedatu-1000 crores:

Stating in the assembly that the Mekedatu Reservoir and Bengaluru Drinking Water Project will be implemented by getting required clearances from the appropriate authority of central government, for implementation of the project, a grant of Rs 1,000 crore will be provided in the current year, he added.

Goshalas will be increased to 100:

The government has given more importance to the preservation of cattle resources and has implemented the Karnataka Prevention of Slaughter and Preservation of Cattle Act, the Chief Minister said, for the effective implementation of the act, the number of Goshalas will be increased from the present 31 to 100 and Rs 50 crore will be provided for the purpose, he said.

Punyakoti Dattu Yojana:

First time in the state, the government will launch Punyakoti Dattu Yojana to encourage public and private institutions to adopt cows in the Goshalas by paying Rs 11,000 annually.

Diesel subsidy of Rs 500 crore:

To encourage the use of farm machinery and to reduce fuel expenditure for the first time in the state, diesel subsidy at Rs 250 per acre subject to a maximum of 5 acres will be given through DBT under a new scheme Raitha Shakti for which Rs 500 crore has been provided in the budget.

An amount of Rs 500 crore has been provided in the budget for the development of infrastructure in the government schools of the state, and priority will be given for selected aspirational taluks under this grant, the CM said.

438 Namma Clinics in major cities:

The budget also proposes to establish 438 Namma Clinics in major cities of the state, also they will be established in all wards of Bengaluru. In these clinics, the services of detection of non-communicable diseases and referral for higher treatment to specialists will be provided he quoted.

Training for SC/ST women graduates:

To enable the establishment of enterprises, entrepreneurship training will be provided in the prestigious IIM Bengaluru to 300 women graduates of SC/S, he informed the house.