Karnataka Budget for 2022-23 presented by Chief Minister Basavaraj Bommai on Friday, the last full Budget of the current Government, has all the characteristics of an election year Budget. As a fiscal exercise, it eschews prudence, as a political exercise, it tries to please all, and as a development exercise, its priorities remain unchanged.
Karnataka has been known for its fiscal prudence for long. The State legislated The Karnataka Fiscal Responsibility Act in 2002, a year before the Union Government passed the Fiscal Responsibility and Budget Management Act-2003. Ever since, Karnataka has mostly adhered to the limits stipulated in the Act. The State crossed this fiscal limit last year, but it was understandable then given the pandemic-induced disruption in the economy and the consequent decline in revenue collection. During 2021-22, according to the Government’s own admission, all sectors have shown growth and revenue collection has surpassed the target.
