State budget to focus on raising revenue

Mangalore Today News Network

Bangalore, March 5: On Friday, Karnataka Chief Minister B S Yeddyurappa presented the State Budget for 2010-11, which proposed a Rs 600 crore urban infrastructure development programme, increased taxes on tobacco, and slapped a toll of Rs 500 on heavy goods vehicles entering the state to raise revenues. 

 

According to the new budget, the VAT on commodities such as masala powder, vermicelli, and school bags will be reduced from 12.5 percent to 5 percent. The CM announced that the state will end the financial year 2010-11 with a surplus revenue of Rs 51.42 crore. 

Rs 600 crore will be allocated to Mukyamanthri Nagrothana Yojane, an urban development programme, which includes developing 7 city corporations, 44 municipal councils, 94 town municipal councils, and 68 town panchayats. 

The value added tax on tobacco products was raised by 2.5 percent; and the motor vehicles tax was raised from 1 – 2 percent. The life-time tax on two wheelers with selling price of up to Rs 50,000 was raised from 8 percent to 10 percent and vehicles with selling price from Rs 50,000 to Rs 1,00,000 was raised from 10 percent to 12 percent. The state expects an additional revenue of Rs 249 crore because of the changes made in the motor vehicles tax, announced the CM. 
  
The state budget also proposed a toll of Rs 500 on every trip made by vehicles weighing more 16 tons, which transport material such as mineral ores. 
 
Yeddyurappa sought a vote on account for four months till July 31.  
 
As per the Revised Estimates (RE) for 2009-10, Yeddyurappa said that the total revenue receipt is expected to be Rs 55,381 crore against the Rs 61,070 crore in the budget estimates. 
 
The RE of total government expenditure was expected to be Rs 60,051 crore against the Rs 62,414 crore estimated in the budget. 
 
The final deficit after taking the net of public account is likely to be Rs 44.80 crore, while it was estimated to be Rs 43.08 crore in 2009-10 budget. 
 
On the 2010-11 budget estimates, he said the total receipt is estimated to be Rs 68,564 crore, consisting of Rs 53,639 crore of revenue receipts and Rs 2,903 crore non-debt capital receipts. 
 
The total expenditure in 2010-11 is estimated to be Rs 70,063 crore consisting of Rs 53,138 crore of revenue expenditure and Rs 16,925 crore of capital expenditure. 
 
The government expects to collect Rs 36,228 crore in tax revenue and Rs 2,820 crore in non-tax revenue. The total central transfers, including taxes and grants, would be Rs 14,591 crore, he said. 
 
The revenue surplus is estimated to be Rs 500.49 crore, while the fiscal deficit is estimated to be Rs 9,708.46 crore, which is 0.15 per cent and 2.96 per cent of the GSDP respectively. 
 
This is in accordance with the stipulations made in the Karnataka Fiscal Responsibility Act 2002 for the current year, he said.