Karnataka Budget 2018 Highlights: HD Kumaraswamy Announces Farm Loan Waiver, Hike in Taxes on Petrol, Diesel And Liquor, Bellandur Lake Rejuvenation Plan

Bengaluru, July 5: The Karnataka Budget 2018-19 was presented by Chief Minister HD Kumaraswamy on Thursday. Kumaraswamy, in his first Budget after taking oath as the Chief Minister, made big announcements including farm loan waivers and increase in petrol and diesel prices.

The Chief Minister, during his Budget speech in the Karnataka Vidhana Soudha, announced a host of tax hikes saying they were necessary to augment resource mobilisation towards fulfilling the farm loan waiver promise.

Karnataka Budget 2018-19 Highlights

• Kumaraswamy announced farm loan waiver up to Rs 2 lakh for loans till December 2017 in the first phase. "I have decided to limit the loan amount to Rs 2 lakhs. Due to this crop loan waiver scheme, farmers will get the benefit of Rs 34,000 crore," he said. He also added, "Farmers who repaid the loan within time,as an encouragement to the non defaulting farmers, I have decided to credit the repaid loan amount or Rs 25000 whichever is less."
• Kumaraswamy has announced Kayaka scheme, under which loans up to Rs 5 lakh will be given at 0 per cent interest, and loans from Rs 5 to 10 lakh will be given at 4 per cent interest for Self Help Groups. The scheme is an attempt to enhance skills and entrepreneurship quality.
• Kumaraswamy proposed to increase the rate of tax on petrol from the present 30 per cent to 32 per cent and diesel from 19 per cent to 21 per cent. This means petrol price will be increased by Rs 1.14 per litre and diesel by Rs 1.12 per litre.
• Kumaraswamy also proposed a hike of 4 per cent on the tax on liquor.
• Rs 1429 crore has been allotted for construction of 990 new hospitals and maintenance of over 200 existing hospitals.
• Speaking on Indira Canteens, Kumaraswamy said, "Considering the popularity of Indira Canteens in Bengaluru, action has been taken to open 247 Indira Canteens in all taluks and district head quarters of the state at an expenditure of Rs 211 crores." He announced a new Medical College At Kanakapura and Super Specialty Hospitals across Karnataka.
• Rs 50 crore have been allocated for Bellandur lake rejuvenation.
• Quantity of rice provided by the government for families has been reduced from 7 kg to 5 kg.

Ahead of the Budget presentation, opposition BJP leader BS Yeddyurappa sought a White Paper on the state's finances, alleging that the government was yet to clear loans and bills amounting to Rs 2.38-lakh crore. "The coalition government should first present a White Paper on the state's finances, which are under stress due to a mismatch between revenue collection and expenditure," Yeddyurappa told reporters.

(The above story first appeared on LatestLY on Jul 05, 2018 12:59 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).