Karnataka budget 2020-21

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Karnataka budget 2020-21

Economic outlook in the eve of Budget 2020-21

  • The growth rate of Gross State Domestic Product during the year 2018-19 was at 7.8%. Against this it is estimated that for the year 2019-20 there will be a growth rate of 6.8%.
  • Fiscal deficit for 2020-21 is targeted at Rs 46,072 crore (2.55% of GDP). In 2019-20, fiscal deficit decreased by Rs 3,299 crore to 2.28% of GDP, as compared to the budgeted 2.48% of GDP.  The budget estimates a Rs 143 crore revenue surplus (0.01% of GDP) in 2020-21.
  • The per capita GDP of Karnataka in 2018-19 (at current prices) was Rs 2,31,491. This is 12% higher than the per capita GSDP in 2017-18.

Concept of child budget

For the first time, the state government has come up with a child budget. All policies and programmes for the development of children below the age of 18 years are consolidated and presented in the budget. Under this, seven new vala mandiras will be established in collaboration with the central government.

Women safety portal

Woman safety portal will be launched to ensure that all the programmes of the Department of Women and Child Development are delivered in a transparent manner. In a significant move, the state government has decided to conduct a baseline survey of transgenders throughout the state.

Budget 2020-21 Proposals in the education sector

  • The state announced that Saturdays to be no-bag days for students & English medium sections will be opened at 400 Urdu medium schools in the state soon.
  • 276 Karnataka public schools will receive Rs 100 crore for infrastructure development.

 

Industries, energy and infrastructure 

  • To correct regional imbalances, a special development scheme for backward talukas will be launched. Rs 3060 crore has been earmarked for this scheme.
  • To provide a permanent solution to the drinking water problem, a mega water project Jaladhare has been launched. This will be implemented in Vijayapura and Mandya districts with a budget of Rs 700 crore with assistance from the Asian Infrastructure Investment Bank (AIIB).
  • To promote investment in the state, Invest Karnataka 2020, a global investor submit will be organized in Bengaluru in November 2020.
  • To assist entrepreneurs, the government has decided to implement the Sakala scheme in KIADB and KSSIDC, the main service providers for starting industrial units in the state.

Budget 2020-21 proposals for Agriculture and allied sectors

  • Under the Pradhan Mantri Kissan Samman Scheme, state has already announced Rs. 4000 per year for small and marginal farmers along with a grant of Rs 6000 from the Centre. The government has already transferred Rs. 825 crore to 41 lakh farmers’ accounts in the state and Rs. 2600 crore has been allocated for 2020-2021.
  • Budget allocated Rs 500 crore to the Kalasa Banduri Nala Project to supply drinking water to three districts of North Karnataka following the Centre’s notification on sharing the Mahadayi river water.
  • For the Yattinahole project, Rs 1500 crore has been provided in the budget.
  • To promote the welfare of fisherwomen, Mahila Meenugaraa Sabaleekarana has been launched.

Budget 2020-21: Allocations for social walfare

  • In the social welfare sector, the budget proposes to provide a grant of Rs.26,930 crore under SCSP/TSP for the welfare of the community of Scheduled Castes and Scheduled Tribes.
  • Action to distribute a minimum of 25% of seats to the students of the same taluk in the residential schools run by Karnataka Residential Educational Institutions Society.
  • A grant of Rs.12.50 crore for the establishment of “Charma Shilpa”, mechanized production units by 250 leather artisans with a subsidy of Rs.5 lakh at a unit cost of Rs.10 lakh through Dr. Babu Jagajivan Ram Leather Industries Development Corporation Limited has also been proposed.
  • A grant of Rs.78 crore for the comprehensive development of nomadic, semi nomadic, marginalized and highly marginalized communities.
  • A grant of Rs.125 crore to various Backward Classes Development Corporations and financial assistance of Rs.2.50 crore for the purchase of bikes to 1000 young men who deliver e-commerce products at Rs. 25,000 each, through D. Devraj Urs Backward Classes Development Corporation has been proposed.

Budget allocations for Kannada culture, youth, sports and tourism

  • A Samraskshana scheme will be launched to conserve and restore 25000 historically significant temples, ancient places and memorials in the state.
  • The Ananthkumar Foundation will be established in the name of the Ananthkumar. To inculcate leadership and values in youth, the foundation will be vested with a grant of Rs 10 crore.
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