Taking a leaf out of late Tamil Nadu chief minister J. Jayalalithaa's populist scheme Amma Canteen, Karnataka Chief Minister Siddaramaiah, who presented his 12th State Budget on Wednesday, announced 198 Namma Canteen across Bengaluru and mobile canteens across all district headquarters.
Slamming detractors of his populist agenda, Siddaramaiah in his opening remarks said, “Rama Rajya (model state) represents a hunger-free, exploitation-free overall development of a state. It cannot be built by those who oppose social justice. In economics today, pro-people government is dubbed as anti-development. But my government has expelled this myth. Karnataka stands first in the country in investment intention though we are acknowledged as pro-social justice.”
Besides, the Rs. 100-crore worth canteen scheme that will provide breakfast for Rs. 5 and lunch/dinner for Rs. 10, the CM has hiked the quota of foodgrains under the Anna Bhagya scheme (free rice) from 25 kilos per BPL family to 35 kilos (costing Rs. 3500 crore), expanded the Maatru Poorna scheme to provide hot meals to 12 lakh pregnant women and lactating mothers across 30 districts, extended Ksheera Bhagya (milk to schoolchildren) to five days a week, and introduced a scheme to supply free foodgrains to old age homes, Nari Niketanas, orphanages, hostels for the poor students, and beggar's rehabilitation centres.
Presenting the Budget 2017-18, perhaps his last full budget before the state goes to polls in early 2018, Siddaramaiah tabled a budget with an outlay of Rs. 1,86,551 crore, an increase of 14.16 per cent compared to last year's Rs 1,63,419 crore. With the upcoming elections in mind, the budget has huge allocations to the Congress' core votebase of OBCs, dalits and minorities. The SCP/TSP sub plan has an allocation of Rs. 27,707 crore, a 42 per cent hike compared to last year. While, the Backward Classes Welfare has been given Rs. 3,154 crore and the minority welfare Rs. 2,750 crore.
Wine and beer would be cheaper with the lifting of VAT, and so the movie tickets as the chief minister has announced a new policy that will put a cap on ticket prices at multiplexes. That's not all. The multiplexes will now have to compulsorily screen Kannada films on at least one screen between 1.30 pm and 7.30 pm.
Commenting on the growth rate of Karnataka's Gross State Domestic Product (GSDP) which has declined from 7.3 per cent (2015-16) to 6.9 per cent in 2016-17, Siddaramaiah said, “Subsequent droughts have resulted in reduction in purchasing power and decline in growth of industrial and service sectors, which contribute to the GSDP.”
A closer look at the budget estimates shows total estimated expenditure at Rs. 1,86,561 crore, while the total receipts is Rs. 1,82,119 crore (revenue receipts of Rs. 1,44,892 and loans of Rs. 37,092 crore).
“We are well within the norms of the Fiscal Responsibility Act as we have revenue surplus of Rs. 137 crore. The fiscal deficit is likely to be Rs. 33,359 crore, which is 2.61 per cent, against the prescribed 3 per cent of GSDP, while the total liabilities stand at Rs. 2,42,420 crore, which is 18.93 percent (prescribed limit is 25 per cent) of the GSDP,” explained Siddaramaiah.
Attacking the Centre on demonetisation, Siddaramaiah said, “Demonetisation caused huge distress to the public and also affected our revenue collection. The collection of stamp duty fell by 25 per cent due to dip in property registrations post November. This resulted in loss of Rs. 1,350 crore. Lack of preparedness of the banking system and frequent changing of goalpost raises several questions over the need for such a step.”
Defending his decision not to waive farm loans, the chief minister said, “The Centre should waive Rs. 4200 crore of farm loans disbursed through commercial and nationalised banks, as it accounts for 80 per cent of the beneficiaries (farmers). We too will follow suit and waive loan amount of Rs. 10,500 crore availed from co-operative societies, which accounts for 20 per cent of farmers. If the PM can assure loan waiver in UP, why not in Karnataka?”
