K'taka presents surplus budget, cuts interest on farm loans

Bangalore, Mar 20 (UNI) Presenting a surplus budget for 2006-07, the Karnataka government today announced an all time low interest rate of four per cent on cooperative farm loans and a new scheme for rural areas to ensure homogenous and integrated development of the state.

Talking to newpersons after presenting the first budget of the Karnataka Development Front government in the state Assembly, Deputy Chief Minsiter B S Yediyurappa, who also holds the Finance portfolio, said farmers, weavers and fishermen could avail of cooperative credit up to Rs three lakh on a low interest rate of four per cent.

For the first time in the country the farm loan had been brought on par with the prevailing interest, he added.

In his budget, Mr Yediyurappa announced a bouquet of schemes, covering various sections of he society. However, he did not levy fresh taxes, though he had rationalised excise rates and reduced or exempted tax on certain commodities used by the common people including rice, paddy, wheat, pulses and flour, animal shoes and certain parts of animal-driven carts.

He also announced a new scheme called Baghya Lakshmi to benefit girl child born in the family of people living below poverty line.

Under the scheme a girl born after April 1 this year would have Rs 10,000 deposited in her name and could draw it along with the interest accrued after 18 years. The scheme to be integrated with the Centre's Bal Samvrudhi Yojana would entail an expenditure of Rs 234 crore.

Deriving inspiration from the 11-point agenda presented by President A P J Abdul Kalam during his joint address to the state Legislature on November 20 last year, Mr Yediyurappa set aside Rs 25 crore for a new scheme of providing Urban Amenities in Rural Areas.

The state would end 2006-07 with a revenue surplus of Rs 79.04 crore, according to budget estimates, with the overall surplus for the next fiscal being Rs 27.47 crore.

He said the revenue surplus for the next fiscal year would be Rs 1,534.54 crore, with the fiscal deficit being Rs 5.210.56 crore.

While the revenue surplus would be 0.83 per cent of the Gross State Domestic Product, the fiscal deficit would be 2.82 per cent as against 2.85 per cent for the current fiscal.

(Eds: pick up suitably from earlier series).

UNI VK RG LR KN1820