INDIRECT TAXES
| Karnataka Budget: Yeddyurappa presents budget for farmers; raises VAT rate Fri, 25 Feb 2011 00:00:36 GMT |
| BANGALORE: Karnataka Chief Minister BS Yeddyurappa donned the hat of a farmer veering towards populism while presenting the state Budget for 2011-12, which lined up massive investments in agriculture sector and minimal tax increases. For the first time in the state’s history, the Budget was presented in two parts, one focused totally on the agriculture sector with the second one dealing with rest. The budget set apart Rs 17,857 crore for development of agriculture and irrigation sectors, which the government claimed was 53% higher than the previous Budget allocation. Agri-oriented investments will account for 21% of the total budgetary expenditure planned for FY12. The Budget includes sops like agriculture loans at one per cent, subsidy on purchase seeds and farm equipment and continuation of free power supply. The budget comes at a time, when the state economy is estimated to grow at 8.2%, driven by strong output in agriculture and services sectors. “The downside risks to growth have certainly receded. The private consumption expenditure and gross capital formation are also showing strong acceleration, reflected in high growth of tax collections. The economic condition appears to be stable in short to medium terms,” Yeddyurappa said in his Budget presentation. The Budget for 2011-12 has estimated an total expenditure of Rs 85,319 crore consisting of revenue expenditure of Rs 65,034 crore and capital expenditure of Rs 20,285 crore. |
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