Karnataka Budget 2022-23: Revenue has increased


Prime Minister Basavaraj Bommai said the GST census increased in 2021-22 compared to the previous year, “showing that we are on the path to recovery”.

Prime Minister Basavaraj Bommai said the GST census increased in 2021-22 compared to the previous year, “showing that we are on the path to recovery”.

Karnataka Prime Minister Bommai began his first budget presentation on March 4 at 12:30pm at Vidhana Soudha in Bengaluru. He chaired a pre-presentation cabinet meeting that approved the 2022-23 state budget.

This is Mr Bommai’s first budget presentation and comes ahead of next year’s Assembly elections in Karnataka.

No new tax

Prime Minister Basavaraj Bommai did not introduce a new tax in his first budget. “The economy in 2021-22 is on the path to recovery. In these circumstances, I am not prepared to impose an additional burden of additional taxes on the common man,” he said in the budget. Recalling that the government reduced the sales tax on petrol and diesel by ₹7 per liter in November 2021, he said he has no intention of increasing the sales tax on petrol and diesel.

Increase in revenue collection

Revenue collection, which got off to a sluggish start earlier in the year due to the second wave of the COVID-19 pandemic, picked up again later in the year, the premier said. Due to this phenomenon, the share of central taxes in the revised estimates of the Union budget has been increased from R₹ 24,273 crore to R₹ 27,145 crore. The Union budget for 2022-23 has an estimated R₹ 29,783 crore as a tax transfer to Karnataka.


“GST surveys are up in 2021-22 year-on-year, showing we are on the road to recovery,” Mr Bommai said. The Union Government has granted 18,109 crore as a GST loan in lieu of GST compensation in addition to 7,158 crore R₹ 7,158 crore GST compensation, which “has helped us not only to effectively manage but also secure COVID-19 and related expenses that all development work is working and the programs were adequately funded, which gave impetus to growth”.

As planned, the GST award will end in June 2022, however Mr. Bommai has appealed to continue it for at least three more years.

Budget size increased

The boom in Karnataka’s economy has helped the state government to cut budgeted loans in 2021-22. Borrowing was revised from ₹67,100 crore to 63,100 crore. This is despite Karnataka increasing the total size of the 2021-22 budget – in revised estimates – from ₹2.43.734 billion to ₹2.57.042 billion. Compared to 2020-21, the budget size has increased by 7.7%.

Budget expanded, budget deficit 3.26%

At ₹2,65,720 crore, the 2022-23 budget is 3.3% larger than the revised 2021-22 budget estimates.

The budget kept the budget deficit at 3.26%. “Although the Union government has budgeted for states to borrow up to 3.5% of the GSDP, our government has capped borrowing at 3.26%. In doing so, we have demonstrated our commitment to fiscal discipline and foresight,” said Mr. Bommai.


The state government, which has reduced its estimated borrowings in 2021-22, plans to borrow a total of 72,000 crore in 2022-23. “This estimates the total liabilities of Karnataka at the end of 2022-23 at ₹5,18,366 crore, equivalent to 27.49% of the GSDP. In this regard, an appropriate amendment to the Karnataka Fiscal Responsibility Act (KFRA) of 2002 will be introduced,” the Chief Minister said.

The KFRA limits Karnataka’s total liabilities to 25% of the GSDP. It was fixed at 20.42% of GNP at the end of 2020-21 but rose to 26.9% at the end of 2021-22 and is now estimated at 27.49% at the end of 2022-23. Karnataka’s borrowing skyrocketed during the Covid-19 pandemic as the state’s economy “slowed down” and many sectors even contracted.

“Budget of Hope”

Describing the 2022-23 budget as “one of hope” in the wake of the pandemic, Mr Bommai said there is now a better ramp-up in resources. The economy has picked up, with the service sector growing by 9.2%, the industrial sector by 7.4% and the agricultural sector by 2.2%. The GSDP is expected to grow by 9.5% compared to the previous year.

‘Pancha Sutra’ for Welfare

Lagging areas of Karnataka are scientifically identified to improve the Human Development Index of all districts under Pancha Sutra (Five Point Formula).

‘Namma Clinics’

The government proposed to set up “Namma Clinics” in major cities and all districts of Bengaluru. These clinics provide diagnosis and treatment of non-communicable diseases and, if necessary, refer patients to higher institutions for specialized treatment.

More Jayadeva centers

A 350-bed Jayadeva branch in Hubballi and a trauma center in Tumakuru have been proposed. 500 children with congenital hearing loss will be fitted with cochlear implants with state funds this year.

Focus on hospitals

A regional Kidwai Cancer Center will be established in Belagavi at a cost of ₹50 crore. A sum of ₹89 crore was allocated for the modernization of KR Hospital in Mysuru and 1,000 crore for the Rajiv Gandhi University of Health Sciences (RGUHS) campus in Ramanagaram.

The state government proposes the establishment of 300 women’s health centers, which should also function as social centers. Seven Taluk hospitals will be upgraded to 100-bed facilities.

₹1,000 crore to upgrade PHCs

Monthly fee for Accredited Social Health Activists (ASHA) to increase by ₹1,000. A total of ₹1,000 crore has been allocated to improve 100 Primary Health Centers (PHCs).

Nurseries at Taluk headquarters

The state government will set up crèches in two Taluk centers per district in areas with a high concentration of working women. The fee for Anganwadi workers was also increased by ₹1,500 for those who served 20 years and ₹1,250 for those who served between 10 and 20 years.

₹500 crore for elementary schools

The government has allocated ₹500 crore for basic facilities in primary schools.

model universities

New model universities are emerging in Chamarajanagar, Bidar, Haveri, Koppal, Hassan, Kodagu and Bagalkot. They will differ from conventional universities with an emphasis on utility technology.

Multi-storey hostels

Multi-storey hostels are being built in educational centers in Belagavi, Hubballi-Dharwad, Kalaburagi, Mangaluru and Mysuru. The CM said that each multi-story complex will accommodate 1,000 students under a new scheme, Deen Dayal Upadhyaya Sauharda Vidhyarthi Nilaya. The move aims to encourage students from SC/ST, OBC and minority communities to enroll in higher education. A budget of ₹250 crore has been allocated for the initiative.

Sri Narayana Guru Residential Schools

New boarding schools are being built in Udupi, Mangaluru, Uttara Kannada and Shivamogga in memory of social reformer Sree Narayana Guru.

Several boarding schools operated under various Minority Welfare Department programs will be merged. At least one school in each district will be upgraded and upgraded to a PU college. These schools would be renamed APJ Abdul Kalam Residential School and action will be taken to obtain CBSE accreditation. The budget allocation for this project is ₹25 crore.

Development of OBCs

For the development of various backward communities such as Tigala, Mali, Mali Malagara, Kumbara, Yadava, Devadiga, Simpi, Kshatriya, Medara, Kunchi, Kurma, Pinjara, Nadaf, Kuruba, Balija, Idiga and Hadapada, the State Government has earmarked £400 crore. Development projects are implemented by Devaraj Urs Development Corporation.

SC/ST Women Entrepreneurs

To encourage entrepreneurship among SC/ST women, 25% of the goal for self-employment and other programs in all developing companies will be reserved for women. Training programs are offered to 300 SC/ST category graduates through the Indian Institute of Management, Bangalore.

Fortified rice to combat malnutrition

Under a new program, ‘Poushtika Karnataka’, fortified rice with added nutrients at a cost of ₹93 crore will be distributed in 14 districts to help combat malnutrition.

widow wage system

The government proposed increasing the subsidy for women under the widow’s wage system. The monthly pension for sexual minorities was increased to ₹800, while the pension for women victims of acid attacks was increased from ₹3,000 to ₹10,000.

The total length of ORR Airport Metro Line from Central Silk Board to Kempegowda International Airport (KIA) in Bengaluru is 58 km.

The total length of ORR Airport Metro Line from Central Silk Board to Kempegowda International Airport (KIA) in Bengaluru is 58 km.

Bengaluru Airport Namma Subway Line

On the ongoing subway projects in Bengaluru, the Chief Minister stated that 33km of subway lines under construction will be put into service by the next fiscal year.

The Chief Minister said the 58km ORR Airport Metro Line from the Central Silk Board to Kempegowda International Airport (KIA) will be completed by March 2025.

Two lines under Phase III of the Namma Metro

The Detailed Project Report (DPR) for Phase III of the Namma Metro project is submitted to the central government. Two new lines were proposed in Phase III: one from JP Nagar to Hebbal with a length of 13 km and the other from Hosahalli to Kadabagere. The total cost of the project is estimated at 11,250 crore.

Zaryapur to Hebbal metro line

Bengaluru gets a new metro line from Sarjapur to Hebbal. A detailed project report (DPR) will be drawn up for the construction of the 37 km long metro line via Agara, Koramangala and Dairy Circle. The estimated cost of the project is ₹15,000 crore.

No reallocation for S-Bahn project

The construction works for the Baiyappanahalli to Chikkabanavara suburban railway project will start soon. The Rail Infrastructure Development Company (Karnataka) Limited (KRIDE), the implementing authority, has already published tenders for this corridor. No new budget has been allocated for this project.

Leave a Reply

Your email address will not be published. Required fields are marked *