Chief Minister’s Press Conference after presenting state budget

Chief Minister’s Press Conference after presenting state budget


Hon’ble Chief Minister’s Press Conference

24.2.2011 / 3.00 PM / Conference Hall, Vidhana Soudha


1.          I am indebted to the people of Karnataka for giving me an opportunity to present my sixth consecutive budget.

2.          Starting in 2006-07, as the Deputy Chief Minister in-charge of Finance Port Folio, I had presented two budgets. As the Chief Minister in-charge of Finance, starting from 2008-09, this is my fourth budget. In all, the sixth consecutive budget.

3.          Starting from the first budget till the latest, my first and foremost priority has been strengthening of the farm sector and the well being of the farmer. Taking a step forward, this time I have presented a separate budget for Agriculture.

4.          I am aware of the debate going on about the need and justification for a separate agriculture budget.  I understand that there is no constitutional bar on presenting a separate budget for agriculture sector. In addition to this, the States have a major role to play than the Centre in the development of agriculture sector.

5.          While presenting my first budget itself, I had clarified that I am not an economic expert. I reiterate the same now. Hailing from a rural farming family, I am fully aware of the difficulties of the farmers. Based on my experience, I have attempted to take a bold step in order to strengthen the farm sector. In this exercise, I have had the opportunity to consult the experts and experienced in the field.

6.          The separate Agriculture Budget is a innovative step. It has emerged out of experience and required for over all development of agriculture sector.

7.          I strongly believe, this is a major step towards the total development of agriculture. Agriculture sector has the potential to generate more jobs and high income in the rural areas. We need to make use of this opportunity effectively in order to prevent migration of rural people in search of jobs to the urban areas.

8.          In the interest of food security of the nation, I sincerely hope that Karnataka Agriculture Budget will become a model to the Centre and all other States.

9.          Along with the separate Agriculture Budget, I have presented the General Budget also. While farm budget is complementary to the comprehensive development of farm sector, the Karnataka General Budget 2011-12 facilitates long term growth along with total and balanced development.

Priorities of Agriculture Budget

First copy of Krushi budget presented to farmers at Bangalore.

10.      Strengthening the farm sector comprehensively.

11.      Rejuvenation of Agriculture and Agro – allied Sectors.

12.      Specific steps towards meeting shortage of capital, deficiency of technical know–how and lack of marketing facilities faced by the farm sector.

Allocation for Agriculture Sector

o   Total Allocation for Farm Sector      –  Rs.17,788 Cr.

o   Agriculture and Horticulture    –  Rs. 3,180 Cr.

o   Animal Husbandry & Fisheries    –  Rs. 1,077 Cr.

o   Irrigation                             –   Rs. 7,800 Cr.

o   Free Power for IP Sets           –   Rs. 3,900 Cr.

Bold Steps

13.      Allocation for Agriculture and allied sectors activities has gone up by 52%. (from Rs.11,000 Cr. to Rs. 18,000 Cr.).

14.      Suvarna Bhoomi Scheme to benefit 10 lakh agriculture families. (Rs.1,000 cr. Allocated).

15.      Farm credit at the interest rate of 1% through Co-operative Societies.

16.      Allocation for Organic Farming doubled – Rs.200 crore allocated.

17.      Attention to develop alternative sources of Energy – Rs.125 crore for Bio Fuel Development.

18.      Extension of Bhoo Chethana Scheme which has resulted in the yield improvement by 35% to all the 30 districts.

19.      Allocation for Water Resources Development doubled – Rs. 7,800 Crore.

20.      Steps to introduce Karnataka Agri – Business Development Policy.

21.      Global Agri Business Investment Meet planned for the first time, in order to attract more capital investments in the farm and allied sector.


22.      The budget outlay for 2011-12 has been increased to Rs.85,319 Crore as compared to Rs.70,063 crore during 2010-11.

23.      It is an ambitious budget aimed at long term growth simultaneously catalyzing the speed of development.

24.      This is a healthy budget with revenue surplus maintained overcoming the impact of economic slow down while restricting the fiscal deficit within the limit fixed by the Centre.

Allocation to Different Sectors

o   Education              –      Rs. 12,283 Crore

o   Urban Development –      Rs. 7,710 Crore

o   Energy                  –      Rs. 8,522 Crore

o   Rural Development

& Panchayath Raj    –      Rs. 4,385 Crore

o   Public Works          –      Rs. 4,335 Crore

o   Health                   –      Rs. 3,254 Crore

o   Social Welfare        –      Rs. 3,264 Crore

o   Revenue                –      Rs. 2,415 Crore

o   Home                    –      Rs. 2,645 Crore

o   Housing                 –      Rs. 1,193 Crore

Increased Plan Outlay

25. The Plan Outlay for 2011-12 has been fixed at Rs.38,070 Crore – an increase of 23% as compared to the previous year. Effective measures have been taken to restrict Non-Plan Expenditure enabling more Planned Expenditure.  The year 2011-12 is the last year of 11th Five Year Plan.  At the end of the financial year, we are expected to achieve 110% of expenditure during the 11th Plan.

26.      This budget will lead to revolution in water resources through a proper and efficient utilization. The period between 2011-21 will be declared as a “Irrigation Decade”. About Rs.50,000 crore will be made available for the irrigation sector in this period.

27.      Rs.2,975 crore has been allocated this year towards redressal of Regional Imbalance in the State.  All out efforts would be made to implement the recommendations of Dr. D.M. Nanjundappa Committee in this regard.

28.      In all, my budget will herald a new era of emancipation of all sections of the society including the down trodden, facilitating social justice through proper utilization of all the natural and human resources while preserving and promoting the land and water resources, language and culture of the State.


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