Karnataka CM HD Kumaraswamy who was keen on presenting a full fledged budget instead of a supplementary budget as suggested by former CM Siddaramaiah, announced a Rs 34,000 crore farm loan waiver scheme on Thursday.
The much anticipated farm loan waiver will nullify loans up to Rs 2 lakh per family taken from recognised financial institutions and defaulted up to December 31, 2017. Moreover, as an encouragement to the non-defaulting farmers, the farmers will credit the repaid loan amount or Rs 25,000 to them, whichever is less, announced the CM.
The farm loan waiver was along expected lines after Kumaraswamy had himself promised to waive loans farmers within 24 hours of coming to power.
But despite increased pressure from the opposition BJP, it took time for Kumaraswamy to come to an agreement on the matter with his coalition partners, the Congress.
Kumaraswamy has tried to balance the spending on farm loan waiver with increased taxation on fuel, alcohol, vehicles and power usage. This will certainly hurt the common man.
In order to meet a revised excise revenue target of Rs 19,750 crore, the budget has proposed Additional Excise Duty on Indian Made Liquor by 4 percent on all 18 slabs. Similarly, the taxation on consumption of electricity increased to 9%; the rate of taxation on consumption of captive energy increased to 20 paise per unit.
The motor vehicle taxes have also been increased by 50% based on square metre of floor area while sales tax on petrol and diesel will be raised by 2%. This means that petrol and diesel will be taxed at 32% and 21% respectively.
Besides new schemes, all welfare schemes of the Siddaramaiah government will be continued, announced CM Kumaraswamy.
Here are the other highlights of the budget
Bengaluru
Employment and Skill development
Health
Education
Agriculture/ Sericulture