K'taka budget focuses on deteriorating Bangalore infrastructure

Bangalore, Mar 20: With the Information Technology sector crying foul for better infrastructure facilities in the city, Karnataka Deputy Chief Minister B S Yediyurappa today announced an allocation of Rs 682 crore for urban infrastructure services and an additional Rs 48 crore for providing basic services to urban poor.

In the budget for 2006-07 presented in the State Assembly, he said the State had prepared the development strategy plan for Bangalore and Mysore under the Jawaharlal Nehru National Urban Renewal Mission and prioritised projects to be taken up. Besides, the State would also take up improvement of urban infrastructure in cities and towns not covered by the Mission and Rs 45 crore had been allocated for the purpose.

Mr Yediyurappa said that to decongest Bangalore, the Government had planned to take up comprehensive development of Ramanagara in Bangalore Rural district over the next four years so that it could emerge a satellite town of the city. The project would address not only physical infrastructure, but also social and economic infrastructure.

He announced setting up of a Bangalore Metropolitan Parking Authority to plan and develop parking lots in the city to avoid parking of vehicles on roadsides.

Apart from this, the Government would take up improvement of infrastructure through externally-aided projects in ten coastal towns at a cost of Rs 937 crore over the next five to eight years and Rs 1,800 crore would be invested on 25 cities and towns of Northern Karnataka under the Asian Development Bank-assisted projects. The Karnataka Municipal Reforms Project was being taken up at a cost of Rs 1,149 crore through World Bank-aided schemes, he said.

On the Metro Rail project, he said the Government was awaiting clearance from the Cabinet Committee of Economic Affairs.

Mr Yediyurappa said the Government had set aside Rs 50 crore for the 'Suvarna Krishi Honda' scheme, under which at least 50,000 farm pounds would be built in the farm lands of small and marginal farmers to promote rain water harvesting. Continuing the path of fiscal reforms, he said the State aimed at eliminating revenue deficit and limit its fiscal deficit within three per cent of the GSDP so that it could utilise the benefit of waiver of repayment of principal amount of Rs 358 crore due to the Union Government as per the incentive recommended by the 12th Finance Commission. The fiscal correction over the last few years had brought in financial stability in the State and all the State taxes were expected at least to meet their respective budgetary targets. The State's taxes for the current fiscal would be around Rs 19,504.80 crore as against the estimated Rs 18,680.16 crore, with the main contributor being Excise which would fetch Rs 3,375 crore (Rs 2,997 crore-estimated).

Stating that the Government would achieve allround development of the State with a focus on social justice and maintenance of communal harmony, he said the State would aim for a eight to ten per cent growth, with the agricultural sector aiming to grow at four per cent. The State's GDP growth for the current fiscal was estimated at 8.7 per cent as against the national average of 8.1 per cent.

Inflation in the State was 4.4 per cent compared to the national rate of 4.7 per cent for the current fiscal.

Among the various schemes announced by Mr Yediyurappa were a Rs five crore fund for development of rural sports, a Rs five crore scheme for sericulture development and a new Pancha Sutra programme for accelerated agricultural growth with the major components being conservation of natural resources, improvement of post harvesting process and timely availability of credit to farmers.

Mr Yediyurappa announced that individual farmers would be exempted from Agricultural Income Tax, while the tax on firms and corporates would be reduced to 30 and 35 per cent from 40 and 50 per cent respectively.

He exempted tax on paddy, rice, wheat, pulses, flour and sooji of rice and wheat, and maida of wheat for a further period of six months, besides animal shoes and certain parts of animal driven carts. He reduced the tax to four per cent from 12.5 per cent on Pha of maize, spent and cut dry chillies and dry chilly seeds, handmade soap, surgical gloves, all compact discs, cold tar, certain testing and measuring equipment and biological control agents, packing materials and certain goods of daily necessity sold by Defence Canteens. He also exempted resale tax on sale of petrol and diesel by the oil refinery at Mangalore, run by ONGC.

UNI