With Assembly elections in the State just over a year away, the State Budget for 2022-23, presented by Chief Minister Basavaraj Bommai on Friday, largely focused on providing some relief to those who faced challenges during the pandemic and refrained from levying fresh taxes or increasing existing ones..
After two years of pandemic, which entailed decreasing expenditure and showing restraint in announcing new schemes, the Chief Minister called the current Budget “one of hope”. Among the key promises was reintroduction of Yeshaswini health insurance scheme for farmers and allocation of ₹1,000 crore for the Mekedatu project. The Budget has also announced the distribution of an additional one kg of ragi or jowar along with five kg rice through PDS.
Increased size
The size of the Budget is fixed at ₹2,65,719.92 crore as against ₹2,46,207 crore in 2021-22, an increase of ₹19,512.92 crore over the previous year. It has proposed to borrow ₹72,000 crore (3.26% of GSDP). The total liabilities at the end of 2022-23 have been estimated at ₹5,18,366 crore (27.49% of GSDP). The Government maintained fiscal discipline and reduced borrowings by ₹4,000 crore from ₹67,100 crore to ₹63,100 crore in 2021-22.
Among the welfare measures promised in his maiden Budget, Mr. Bommai proposed ₹2,000 monthly hardship allowance for pourakarmikas, increase in monthly honorarium for midday meal workers and ASHA volunteers by ₹1,000 each, and for anganwadi workers by ₹1,500 for those who have rendered above 20 years of service.
Mr Bommai promised an increase in pension to 1.32 lakh beneficiaries of unmarried and divorced women, gender minorities from ₹600 to ₹800, and increased pension for women of acid victims from ₹3,000 to ₹10,000.
The Budget adopted what it called “3 Es Manthra” --- employment, education and empowerment --- for the uplift of weaker sections. The Chief Minister termed the Budget “inclusive and growth-oriented” and proposed aid of ₹50,000 for purchase of electric three-wheeler goods vehicle costing ₹1.50 lakh for SC/ST youth. The Budget decided to allocate ₹1,100 crore for providing jobs for youth, women and weaker sections under the Rural Livelihood Mission. The Budget proposed the Vinaya Samarasya Yojane for eradicating untouchability and decided to give funds for restoration and development of SC/ST mutts and institutions.
It proposed ₹400 crore for the development of backward and most backward communities and construction of multi-storeyed hostel complexes each of 1,000 capacity in various cities for encouraging higher education of SC/ST, OBC and minority children under the ‘Deen Dayal Upadhyaya Sauharda Vidhyarthi Nilaya’ scheme. It envisaged construction of Sri Narayana Guru Residential Schools in coastal districts and Shivamogga.
Aspirational taluks
It has proposed to build eco-friendly integrated townships to realise the aim of New Karnataka for New India and one township would be developed in each revenue division. For the first time, the Budget introduced an eco-budget by proposing ₹100 crore for compensating negative effects of the environment. It is also for the first time the Budget proposed to develop taluks which are performing below the State average by various indicators as “aspirational taluks” by setting aside ₹3,000 crore.
“I have attempted for a balanced development of all sections of society and all regions in my first Budget. The Budget is the reflection of the aspirations of people-centric development,” Mr. Bommai said.
