Karnataka Budget 2009 -Highlights

Karnataka Budget 2009 -Highlights



Plan Size
1. The Plan size of 2009-10 is Rs 29,500 crores.
2. A net increase of Rs. 3,548 crores over previous year’s (2008-09) plan size.

1. State’s Internal production quantity is Rs.2,68,138 Crores.

Per Head Income
1. Annual Per head income of the State is Rs.46,289.

Budget Grant Allocation


Rs. In Crores



Electricity Subsidy





4,714- Rs.1200 crores more than last year

Rural Development




Development of the other

cities including Bangalore





1. Agricultural loan at 3% interest will be given in Nationalized and Commercial Banks in addition to co-operative institutions. Interest subsidy of Rs.250 cores provided for this purpose.
2. The revolving fund for support price foragricultural products is increased from Rs. 500 crores to Rs.750 crores.
3. The incentive for organic farming is increased from Rs.100 crores to Rs.200 crores.
4. Provision for foreign educational tour of 1000 farmers for this year too.

1. Sanctioning of new Horticulture College to Kolar. An amount of Rs.5 crore will be provided.
2. Financial assistance of Rs.1000 has been given to every family of small and marginal dry land farmer who has suffered losses because of deficit rainfall during the monsoon. So far about 22 lakh farmers have been assisted under this scheme at a cost of Rs.220 crore.

Animal Husbandry
1. Rs.10 crore provided for the development of Amruth Mahal Kaval development to be under taken by Karnataka Veterinary University.
2. The incentive amount of Rs.2 per liter to the milk producers is increased from Rs.65 crore to Rs.200 crores.

1. Irrigation projects’ grant is increased from Rs.3500 crores to Rs.4000 crores.
2. Rs.500 crores provided for Upper Badra Project for the present year.
3. We intend to provide irrigation facility for 63,000 hectares during the present year.budget2

Rural Development
1. Rs.800 crores provided for development of 2,500 kms. of rural roads.
2. Rs.800 crores provided for rural drinking water supply schemes.

Sampoorna Nairmalya
1. Rs.5 crores provided for cash incentive towards Gram Panchayats maintaining Sampoorna Gram Nairmalya.

Suvarna Gramodaya
1. 1,200 villages proposed to be developed under Suvarna Gramodaya Scheme. Rs.300 crores will be released at first phase.

1. Rs. 8,597 Crores Grant allocated for Education during 2009-10 An increase of Rs. 326 Crores over last year’s allocation.
2. Establishment of 114 Middle and High schools an Kendriya Vidyalaya Model under Central Scheme. 3. Rs.25 crores provided towards incentive to start computer labs in aided high schools incentive of upto Rs.1 lakh at 50%.
4. The monthly boarding and lodging charges of students of residential schools/ashrama schools is increased from Rs.350 to Rs.550 per head.
5. Establishment of 200 new hostels for scheduled caste students and 50 new hostels for scheduled tribe students.
6. Tumkur University will be renamed as “Dr.Shivakumara Swamiji University”.
7. Establishment of new University at Davanagere Rs.10 crore provided.
8. Establishment of Ayurveda Medical University.
9. Establishment of Dr. D.M. Nanjundappa Research Centre at C.M.D.R., Dharwad.
10. Establishment of new horticulture college at Kolar.
11. Establishment of new engineering college at Gangavathi of Koppal district.
12. Rs. 35 crores provided for filling up the vacancies of teachers in aided schools.

Dr. Shivakumar Swamiji University
It is proposed to rename Tumkur University as Dr. Shivakumar Swamiji University.
An amount of Rs.2 crore has been proposed forestablishing a post-graduate Study Centre of Mangalore University at Kushalnagar in Koaagu District.

1. Suvarna Health Suraksha Scheme will be implemented in five districts of Gulbarga Region 16 lakh families to be benefited by this scheme.
2. Necessary action for strengthening Arogya Kavacha Scheme.

Social Welfare
1. The grant size under SCP and TSP schemes is increased from 4.5% to 15% – the pooled grant increased from Rs.200 crores to Rs.600 crores.
2. Massive campaign to enroll schedule caste and schedule tribe membership to co-operative societies Rs.10 crore provided for this purpose.
3. Starting of 114 “Kittur Rani Channamma Girls Residential Schools” for Scheduled Caste Girls.
4. Lidkar to be renamed as “Jagajivan Ram Development Board” Rs.5 crore for revival.
5. Provision for a site and Rs.5 crore to build Babu Jagajivan Ram Bhavan at Bangalore.
6. Rs.150 crore provided for over all development of schedule caste and schedule tribes colonies.
7. Rs.10 crore provided for building Banjara Community Halls at 5 district headquarters.
8. Rs.20 crore provided for building Sevalal Community Halls at 200 Thandas.
9. Establishment of labour welfare board for unorganised labourers of Madivala, Savitha, Kumbara, Kammara, Tailors and Jewellars Rs.100 crore provided for social and economic security programmes. 10. Health insurance sheme for Auto and Taxi Drivers.

Urban Development
1. Rs.3000 crores provided for Bangalore Urban Development.
2. Projects worth Rs.1000 crores for Bangalore City Infrastructure Development to be undertaken by B.D.A.
3. Rs.700 crores for Bangalore Metro Project.
4. Rs.400 crores for Water Supply Schemes of Bangalore.
5. Chief Ministers Urban Development Scheme for infrastructure development of Cities and Towns.
6. Rs .50 crores towards inf ras t ructure development to each of the Municipalities other than Bangalore.
7. Rs.25 crores for each district for infrastructure development.
8. Rs.10 crore for each Taluk Panchayat for infrastructure development.
9. Rs.5 crore for each Town Panchayat for infrastructure development.
10. 10,000 houses to be build for slum dwellers.

1. 4 lakh houses to be built during this year Rs.1200 crores provided.
2. One lakh sites to be allotted Rs.100 crores provided.
3. 5,000 Houses to be built for slum dwellers.
4. 5,000 Houses to be build for Devadasi Women.
budget3 Industry
1. Rs.1,000 crores allocated towards landacquisition and industrial site development from 1,000 upto 2,000 acres in each districts.
2. Rs.50 crores provided for revival of MandyaSugar Factory.

Skill Training
1. Rs.100 crores provided for skill training during2009-10.

1. Free electric supply continued for 17 lakhagricultural pump sets the subsidy amount increased from Rs.2050 crores to Rs.2,300 crores.
2. MoU to establish 6900 mega watts electricalprojects.

Steps for removal regional imbalance
1. Rs.2,600 crores (?) provided for reddressal off regional imbalance as per Dr. D.M. Nanjundappa report.
2. 1000 new milk co-operative societies proposed under North Karnataka Milk Unions.
3. One new Milk Chilling Center worth Rs.10crores each to be started at Gulbarga and Belgaum.
4. Rs.10 crore for establishing IT part at Gulbarga.

1. Rs. 5 Crore for Building Amrutha Mahotsava Bhavana to commemorate 75 years of Kannada Cinema.

1. Rs.25,000 cash prize for Bronze Medal Winners,Rs.50,000 for Silver Medal Winners and Rs.1 lakh for Gold Medal Winning sportsmen from the State at National Level sports meet.
2. Flight charges and an additional Rs.50,000 cash incentive for sportsmen representing Karnataka in International Sports Meet.

Tourism Development
1. Rs.180 crores provided for Tourism Development.

Kaginele Development
1. Rs .10 crores provided for Kaginele Development.

Suvarna Vidhana Soudha at Belgaum
1. Rs. 100 Crores as first installment to build Suvarna Vidhana Soudha at Belgaum.

Coastal Area
1. Rs.100 crores provided for Coastal Area Development Programmes.

Kalusanka/Hanging Bridge
1. Rs.25 crores provided for Kalusunka/Hanging Bridge towards better communication in Malnad Districts.

1. Alampalli Venkataram Study Center proposed under Bangalore University to study the relationship between employers and employees and industrial relations.

Daily Wage Workers
1. An enhancement of Rs.1000 in monthly wages of all other daily wage workers.

Anganawadi Workers
1. The monthly wages of Anganawadi workers and Anganawadi Assistants is increased by Rs.250 and Rs.125 respectively.


1. It is proposed to form 2000 fisheries women self-help groups and provide Rs.50,000 as loan and Rs.10,000 as seed money.
2. Rs.5,000 houses to be built for fishermen.
3. Loan at 3% interest for fishermen too.

1. Rs.60,000 each provided to construct 5,000 house with shed for weavers.
2. Loan at 3% interest for weavers too.

1. Rs. 400 Monthly Pension for Unmarried women over 50 years and destitute women.
2. Women Wakf Board to be started Rs. 5 Crores alloted.
3. 5,000 Houses to be built for Devadasi Women.
4. Building of Sthree Shakthi Complex in Each Taluk.

1. 3,840 Vacancies across different cadres to be filled up.
2. Five new police station to be started in Malnad Area.

New Districts
1. Rs.25 crores each provided for buildings and infrastructure of newly formed Chikkaballapur and Yadgir districts.

Tax Concession
1. Taxes on “Baje” Crop Cancelled.
2. The tax on coconut, areca nut, Tamarind and Shikakayi reduced by 2%.
3. Stamps and Registration Tax reduced from 7.5% to 6%

New Tax
1. New Tax to be levied on Sports of IPL Model sponsored teams.

Expenditure Reform Commission
1. An Expenditure Reform Commission is formed to Study the expenditure of Government Grants.

Impetus for Implementation of Dr.Nanjundappa’s Report
For the last two years, budgetary allocations are being made for taking up development activities in 114 qackward taluks·as identified in Dr. Nanjundappa’s report by implementing a Special Development Plan. For this allocations of Rs. 1,572 crore and Rs. 2,547 crore were made in the years 2007-08 and 2008-09, respectively. An amount of Rs. 2,574 crore has been provided for Special Development Plan in the Budget. In the present budget, specific allocations have been made for the first time under various Grants under a separate budget line to show exclusive provisions for the Special Development Plan.

Necessary allocation will be provided forregional development boards such as Hyderabad Karnataka Development Board, Malnadu Area Development Board, Bayaluseeme Development Authority which had also been established to promote balanced development of different parts of the State.

IISc. Branch in Chitradurga
An extent of 1000 acres will be provided in Chitradurga District for opening a new campus of the Indian Institute of Science, Bangalore.
For establishing a natural disaster monitoring center and a permanent earth-quake monitoring center in the State, an amount of Rs.5 crore will be provided.

Power Generation and Distribution
Due to inadequate rainfall during 2008-09 there was serious shortage in water levels of Hydel Reservoirs and consequently there is a shortage of 2000 million units of Hydel power generation. To make up this shortage the State Government has resorted for increasing the production in Thermal power projects and has also purchased power in large quantities from other states as also the private power producers of the state.
In spite of these adverse conditions the State Government has provided free power supply to 17 lakh families of farmers with pumpsets of less than 10 HP capacity as per its commitment. The Government has incurred an additional expenditure of Rs.500 crores, for this purpose.

Projects for Power Generation
The following measures have been taken to augment power generation capacity considerably.
a.   A new 500 MW capacity Thermal Power plant is commissioned in Bellary.
b.   A 230 MW Hydel plant is commissioned in Varahi.
c.   500 MW Capaci ty Power plants are commissioned from Renewable Energy sources.
d.   An agreement has been entered into with the State of Chhatishgarh for establishment of a 2000 MW capacity Thermal Power Plant.
e.   An agreement has been entered into with NfPC for estflblishment of a large power plant of 4000 MW capacity in Koodagi of Bijapur district.
f.   An agreement has been entered into with BHEL for establishment of Thermal Power Plant of 2400 MW capacity at Yedlapur and Yaramaras of Raichur District.
g.   Infrastructrure facilities will be provided for the establishment of new power plants for generation of 1015 MW capacity at Udupi, Gulbarga and Hidkal.

An amount of Rs.180 crore will be provided for supporting the development of tourism in the State in this year’s Budget. Infrastructure facilities of good quality will be developed under public private partnership at the important tourist places like Hampi, Badami, Pattadakal, Bijapur, Belur, Halebeedu, Somanathapura, Jog etc.
An amount of Rs. 10 crore will be provided for the development of Nandi Hills, Kemmanagundi, Kodachadhri and other hill stations.
An amount of Rs. 5 crore will be provided for development of Tagore Beach at Karwar.

Support to the Media
Independent media play a very vital role in the strengthening of democratic processes. Following programmes will be taken up for providing necessary facilities to the media representatives for performing their duties responsibly.
An assistance of Rs.25lakh each for establishinga well-equipped Vartha Bhavan/Media Centre in every district. The annual income limit for eligibility in respect of monthly pension for the retired journalists will be raised from the existing Rs.5000 to Rs.50000.
The Government is concerned about the welfare of the journalists who always work under pressure of time lines. Therefore it has been decided to bring the working and the retired journalists under the ‘Yeshasvini, Co-operative Health Insurance Scheme’. This scheme implemented through the Journalists Co-operative Asocciations with the help of the Department of Information.
In order to facilitate travel of journalists for participating in various professional activities at the district level, free bus passes for journalists will be provided through Road Transport Corporations for travel within the district.

Entertainment Tax
Movies are the main source of entertainment for common man. To reduce their burden, I intend to reduce Entertainment Tax from 40% to 30%.

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