Surplus budget presented in K'taka, interest on farm loan cut

Bangalore, Mar 20 (UNI) Bringing interest rates on farm loans to an all time low of four per cent, Karnataka announced a new scheme for rural areas to ensure homogenous and integrated development of the State in the surplus, tax-free budget for 2006-07 presented in the State Assembly today.

Presenting the first budget of the Karnataka Development Front Government, Deputy Chief Minister B S Yediyurappa, who also holds the Finance portfolio, announced schemes to benefit the rural and agricultural sectors, besides improving the infrastructural facilities in urban areas.

Keeping in tune with President A P J Abdul Kalam's vision for Karnataka for 2020, he announced a new scheme of Providing Urban Amenities in Rural Areas (PURA), setting aside Rs 25 crore.

Mr Yediyurappa said the State Government, which was currently charging six per cent interest on cooperative farm loans, had decided to bring it down to four per cent, the lowest rate in the country. The reduction in the interest rate was in the backdrop of the Union Government extending seven per cent interest rate for farm loans provided by commercial banks.

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.

More UNI VK GD YA SSC1412