Basavaraj Bommai, the Chief Minister of Karnataka, presented the state’s Rs. 3,09,182 crore budget on 17th February 2023. The budget was allocated in accordance with the budget’s focus on six different sectors. There are only 2 proposals regarding tax as it is mentioned below.
The main highlights of the budget includes:
Tax Proposals:
- Simplification of Profession Tax Act. Increase in exemption limit for lower income employees from Rs.15,000 to Rs.25,000
- Karasamadhana Scheme for settlement of pre-GST tax disputes.
Other Proposals:
- Implementation of scientific guidance value system through K-GIS Technology of Stamps and Registration department.
- Limit for interest free short term loan to farmers increased from Rs.3 lakh to Rs.5 lakh. Target to disburse Rs.25,000 crore loan for 30 lakh farmers.
- Additional subsidy of Rs.10,000 in the year 2023-2024 under the new scheme ‘Bhoo siri’ for Kisan Credit Card holders.
- Introduction of Apical Root Culture Technology for self-reliance of farmers in Potato seeds.
- Revolving fund increased to Rs.3,500 crore for purchase of food grains under Minimum Support Price Operations.
- GPS tracking system for the safety of fishing boats.
- Complete fee exemption for students of Government Pre-University College and Government Degree College – benefits 8 lakh students.
- Extension of free dialysis services up to 1 lakh cycles.
- Entrepreneurship training in IIMB for 300 minority women graduates.
- The limit for the loan provided at 4% rate of interest for the women entrepreneurs in the Service sector increased from Rs.2 crore to Rs.5 crore.
- Simplification of sanctioning of Stone Quarry Lease.
- Development of 75 junctions to ease traffic congestion
The 6 sectors focused are:
- Agriculture and Allied Activities
- Welfare and Inclusive Growth
- Stimulating Economic Growth
- Comprehensive Development of Bengaluru
- Conservation of Culture, Heritage and Natural Resources
- Administrative Reforms and Public Service Delivery
Among all the sectors, the minister proposed to allocate more funds to Welfare and Inclusive Growth which is of Rs.80,318 crore. It is clear from a summary of the state of Karnataka’s budget 2023 that the state has given equal weight to each and every department. The budget was preserved to put fresh ideas and industry-relevant technology into practice.
The government has set a target to collect departmental taxes. The target for collection of tax/revenue for various departments for the year 2023-24:
- Commercial Taxes department-excluding GST compensation Rs.92,000 crore
- Stamps and Registration department – Rs.19,000 crore
- Excise department – Rs.35,000 crore
- Transport department – Rs.10,500 crore
- Mines and Geology department – Rs.7,500 crore
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