State budget lacks poll punch

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New Delhi: In the backdrop of hectic political activity in anticipation of Assembly polls in May, Union finance minister P Chidambaram last week unveiled Karnataka's budget for 2008-09 in Parliament.

Karnataka has been under President’s rule since November 2007, when the week-old Bharatiya Janata Party government fell after it failed to prove majority on the floor of the House after its coalition partner, Janata Dal (Secular), refused to back it.

Seeking a vote-on-account for the first six months of the financial year, Mr Chidambaram said the state's revenue surplus was estimated at Rs 2,972.65 crore. Overall, the budget estimates placed the revenue receipts at Rs 46,188.70 crore, while the state's share of central taxes, duties and grants-in-aid from the Centre added up to Rs 12,811.12 crore. Revenue receipts are estimated at Rs 46,188.70 crore, leaving a revenue surplus of Rs 2,972.65 crore.

Contrary to expectations, the budget lacked an electoral colour, as there was neither any announcement of schemes for various sections, like farmers, nor new taxes.

On the capital account, the receipts saw a decline of Rs 486 crore in 2007-08 compared with the budget estimates of Rs 5,289.78 crore. However, capital expenditure under revised estimates showed a rise of Rs 649.33 crore, primarily on account of additional expenditure sanctioned for irrigation and public works.