Bengaluru, March 18: Agriculture sector is in the state of Karnataka is expected decline by 4.7 % as many Taluks are reeling under the drought.
The wind for the growth rate of Karnataka's economy is rough and rate slow down from 7.8 % to 6.2 %
Presenting the state financial budget for the record 11th time in his political career and 4th time after assuming the chair of Chief Minister, Siddaramaiah attributed the slow down of economy to the growth rate of the agriculture sector.
Keeping in view of these factors, the budget set aside Rs 4, 344 crores to agriculture sector, besides abolishing agriculture income tax. The size of the 2016-17 budget is 1, 63, 419 crores.
He said the service sector is growing at 9.1 per cent while the industrial sector is expected to register a growth of 4.5 percent during the current year.
In a major relief to planters, the budget proposed to abolish agriculture income tax and it would benefit coffee, tea and rubber and other plantation crop growers.
The total budget size of 2016-17 is pegged at Rs. 1,63,419 crore, of which the plan size is fixed at Rs. 85375 crore, an increase of 17.6 per cent over the plan size of Rs. 72,597 crore during the last year.
Of the 1,63,419 crore, the estimated revenue receipts is pegged at Rs. 1,30,758 crore and capital receipts at Rs. 31,198 crore including borrowings of Rs. 31,036 crore. The fiscal deficit is expected to be Rs. 25,657 crore, which at 2.12 per cent of GSDP, complies with the Karnataka Fiscal responsibility Act.
The Chief Minister also proposed to set up Karnataka State Agriculture and Farmers Welfare Committee which will be headed by Chief Minister. The body will be set up for redressal of grievances of the farmers and converge of schemes of agriculture and other department
To give more focus to farmers and effective techniques adopted by them, special agricultural zones would be identified in parts of the State on the lines of SEZs formed for industries.
The budget proposed to develop 100 villages in four districts across four revenue divisions as Model agricultural villages under the "Suvarna Krishi Grama Programme".
The budget exempted from the tax handmade paper and hand-made paper boards, including hand-made paper products manufactured and sold by dealer recognised by the Khadi and Village Industries Board as an eco-friendly measure.
It reduced VAT on office files made of paper and paper boards from the present rate of 14.5 per cent to 5.5 per cent.
It cut VAT from the present rate of 14.5 per cent to 5.5 per cent on articles of nickel, titanmum falling under heading HSN 7505, 7506, and 8108 to encourage aerospace industry.
Other goods that set to become cheaper are: rubber sheet, set top boxes for viewing TV content, multi-media speakers, LED bulbs. Taxes on all these goods reduced from 14.5 per cent to 5.5 per cent.
Mr. Siddaramaiah would seek a Vote on Account for the first four months of the financial year, ending July 31. This has been the norm in Karnataka.