Karnataka Chief Minister B S Yediyurappa said the budget tabled by him in the state assembly on Monday was balanced and people-friendly without hiking tax rates or levying new taxes despite the coronavirus pandemic and natural calamities. Economic activities in the state had come to a standstill and revenue collection was adversely hit due to natural calamities, floods and COVID-19 pandemic, he told reporters after presenting the state budget for the year 2021-22.
“This is a people-friendly budget without causing burden to people.There is neither any increase in tax rates nor any new tax proposals,” Yediyurappa, who holds the finance portfolio, said. Against the budgeted estimates, the state expected to spend at least 94 per cent of the total expenditure, he said.
“This year is the result of strict fiscal discipline in the initial months of the financial year and recovery of the state economy in the last quarter,” the Chief Minister explained. According to him, the fiscal deficit in 2021-22 will be Rs 59,240 crore against the current fiscal’s Rs 46,072 crore.
The revenue deficit will be Rs 15,134 crore. The Chief Minister said he has made an honest effort to maintain a balance in the budget by giving importance to all classes, all sectors and all districts.
To a question, Yediyurappa said he was confident about receiving the central grants mentioned in the budget. To a question on petrol and diesel prices, he said it was less in Karnataka than any other state,, clarifying that there would be no reduction in taxes on fuel in the state.
Source : Times of India