Giving priority to infrastructure, human resource development and agriculture, the Karnataka government has presented a Budget increasing outlay to Rs 70,063 crore for 2010-11, up from Rs 60,051 crore in 2009-10.
Agriculture will get a major chunk of 22% at Rs 13,484 crore as assistance to farmers followed by Human Resource development, which would get Rs 13,162 crore. Infrastructure and welfare schemes would get 13% and 11% respectively of the total outlay, said Karnataka chief minister BS Yeddyurappa.
He said the government would provide Rs 2,500 crore budgetary support for supplying electricity to irrigation pump sets.
The government has taken steps to double the power generation capacity of the state in the next four years from the current 8,000 mw. He said a capital support of Rs 500 crore would be provided to the Karnataka Power Corporation and power transmission and distribution companies. The subsidised loan scheme under which farmers could borrow money at 3% interest would be extended only to those who made timely repayment. VAT exemption on paddy, rice, wheat, pulses and products of rice and wheat extended for one more year from April 2010. VAT rate 4% increased to 5% on all goods except declared goods while it has been increased to 15% from the current 12.5% on tobacco.