A Costly Budget : Rs. 34,000 Crore Farm Loan Waiver Makes Other Commodities Dearer
Jul 6, 2018
Bengaluru: Chief Minister H.D. Kumaraswamy announced waiver of all default crop loans benefiting farmers to the tune of Rs.34,000 crore in his Budget proposals presented in the Assembly this morning.
The size of the Budget is Rs. 2,13,734 crore and to balance the financial burden of the farm loan waiver, tariffs and taxes on petrol, diesel, electricity, liquor and private service vehicles have been increased.
The CM has proposed to increase the rate of tax on petrol from the present 30% to 32% and diesel from 19% to 21%. In effect, petrol price will be increased by Rs. 1.14 per litre and diesel by Rs. 1.12 per litre. Tax on liquor will go up by 4 percent and power tariff will be up by 20 paise per unit. There will be a 50% increase for private service vehicles based on square metre floor area the vehicle occupies.
Kumaraswamy said crop loans made up to December 31, 2017 would be waived off in the first stage. He said the loan amount would be restricted to Rs. 2 lakh. However, families of government officials and officials of the co-operative sector, farmers who have paid income tax for the past three years are ineligible for the farm loan waiver.
As an encouragement to non-defaulting farmers, the CM has decided to credit the repaid loan amount of Rs. 25,000 or whichever is less to each of the farmer’s account.
Kumaraswamy presented the Budget at 11.30 am today, the date and time decided by his brother H.D. Revanna, who is a firm believer in astrology. This is the first budget of the newly formed Janata Dal (Secular) – Congress coalition government.
The Budget had been a topic of debate among the coalition members with former Chief Minister Siddharamaiah asking for a supplementary budget instead of a new one. Siddharamaiah had presented the budget in February this year.
- Rs. 150 crore for agriculture development based on Israel model
- Former CM Siddharamaiah’s ‘Bhagya’ schemes to be continued
- Rs. 50 crore allotted for rejuvenation of Bellandur Lake in Bengaluru
- Rs. 30 crore for Film University in Ramanagaram
- Rs. 25 crore for various Mutts across the State
- Anna Bhagya scheme: Quantity of rice cut from 7 kg to 5 kg
- Rs. 15,825 crore for six elevated corridors across Bengaluru
- For Education – Rs. 26,581 crore, Water Resources – Rs. 18,142 crore
- For Urban development – Rs. 17,727 crore, Energy – Rs. 14,499 crore
- For Social Welfare – Rs. 14,123 crore, PWD- Rs. 10,200 crore
- 35 electrical sub-centres to be established to enhance transmission system
- Special package of Rs. 250 crore to repair primary, high school, PU College and University buildings
- 247 Indira Canteens in all Taluks and District Head Quarters at an expenditure of Rs. 211 crore
- Kayaka scheme to give 0 % interest loans up to Rs. 5 lakh and 4% between Rs. 5 and Rs. 10 lakh
- Badavara Bandhu mobile service in five cities to address the issues of street vendors/small vendors
- New medical college to be established at Kanakapura in Ramanagaram district
- Mandya Institute of Medical Sciences Hospital to be upgraded to 800-bed hospital.
- Special allocation for development of Gaganachukki and Bharachukki in Mandya, Chamarajanagar
- Rs. 50 crore special package for all-round development of Mandya city
- Rs. 40 crore to be provided to establish a 300-bed super-speciality hospital at Ramanagaram
- New super-specialty heart and cancer hospitals to be opened at Belagavi, Kalaburagi and Mysuru
- Rs. 3 crore share capital to be provided to private companies who come forward to open 3-star hotels having 500 room facilities.
- 5 kg rice free of cost, 1/2 kg toor dal with subsidised rate and 1 kg palm oil, 1 kg iodine and iron content salt and 1kg sugar to each BPL card holder under Anna Bhagya.
- “Phased” increase in allowance of Rs. 6,000 for lactating and pregnant mothers under Mathru Shree scheme
- New scheme called “Compete with China” to be launched
- Government to celebrate Adi Shankara Jayanti
- 95 kms Metro Network under phase 3 include 42.75 kms from JP Nagar to K.R. Puram in Bengaluru
- Rs. 10 crore for development of various backward and deprived castes, communities
- Rs. 12 crore for Kidwai Cancer Hospital in Bengaluru for bone marrow transplant treatment
- 450-bed capacity new hospitals to be established in medical colleges of Gadag, Koppal, Chamarajanagar and Hassan districts and Rs. 200 crore is provided
- Three model roadway facility at major National Highways to provide facility to tourists to relax and have food
- Anganwadi centres under Women and Child Welfare Department to be strengthened as ‘Balasnehi’ centres
- English medium classes to be conducted along with existing Kannada medium classes in Government Kannada primary schools
Source: Star of Mysore