Bengaluru, Mar 4: CM BS Yediyurappa may reconsider plans to hike taxes and curtail populist schemes in his budget on Thursday as the Centre released part of GST compensation it owes the state. Officials said the Centre released the first instalment of the bimonthly compensation for October-November amounting to Rs 2,013 crore.
"This is welcome relief as the government has been scrambling to mobilise funds," said BT Manohar, member of GST consultative committee, government of Karnataka. The second instalment of Rs 1,523 crore is also expected to be released soon.
The CM, in his seventh budget, is expected keep the focus firmly on farmers and give top priority to irrigation, agriculture and welfare schemes.
The irrigation sector is expected to land the lion's share with an allocation of at least Rs 25,000 crore, followed by agriculture. Former CM Kumaraswamy had allocated over Rs 17,000 crore for water resources.
The bulk of funds is likely to go to the Upper Krishna (UKP) and Upper Bhadra projects, as it will help backward Kalyana Karnataka and central Karnataka regions. The two are also significant political blocs. The government will also seek assistance from the Centre for the UKP project in the erstwhile Hyderabad-Karnataka region, which enjoys special status under the Constitution owing to its backwardness. P4
Yediyurappa is also expected to spell out populist schemes for the poor.
Former CM HD Kumaraswamy had allocated Rs 17,212 crore in the previous budget for water resources and Yediyurappa is likely to go well beyond that figure. "Priority will be given to irrigation and farmers," Yediyurappa had said recently. "I am making efforts to present a budget within the financial constraints."
he amounts are released once every two months, but the Centre had fallen behind on payments. PX
"There are indications that another payment will be made."
The state's optimism stems from the fact that the Centre's GST collection crossed the Rs 1 lakh crore-mark for four successive months till February.
However, the CM could still hike tax rates marginally. At a pre-budget meet on resource mobilisation where Yediyurappa is learnt to have expressed willingness to borrow funds, officials from the finance department advocated raising tax rates instead.
Comments
Hey chaddi terrorist, stop spreading your chaddi cancer disease to karnataka state
We the Indians should be celebrating that axxxxxxes farewell to his permanent hell hole where delicious pork are cooked and served by 72 angels plus hoards of his harem collection.
Others say that Yediurappa earned a goodwill among the masses for celebrating Tipu Jayanthi when he was CM & same with Deve Gawda. These politicians change their stances to suit them. Tamil Nadu should celebrate rather Jayanti of Veerappan who was a true Tamlian nationalist. After kidnapping actor Rajkumar, veerappan demanded everything favoring TN. At that Time CM SM Krishna had almost agreed to Veerappans demands. Tipu will remain well addressed in the history for the good work done in Restoring temples & serving his subjects. Feku will be remembered in history for his expertise in riots.
This sidramya is proving himself as Pedramiah - He is suffering from the symptoms of political-termination !
@Sangeeth and all other cheddis... Why you people wants to create problems... If you are not interested then keep calm. Let them celebrate
Siddu wont learn.. previous year much problem created because of celebration. Why he wanted to celebrate
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