The Karnataka Budget for fiscal 2018-19 on Thursday estimated a Rs 579.05-crore widening deficit on capital account from its Revised Estimates of Rs 105.30 crore and Budget Estimates of Rs 370.04 crore for fiscal 2017-18.
“Fiscal deficit is expected to be Rs 40,753 crore, which is 2.89 per cent of the Gross State Domestic Product (GSDP),” said Karnataka Chief Minister H.D. Kumaraswamy in the Assembly here.
Fiscal deficit is the difference between the total revenue and expenditure of the state government in a financial year.
Similarly, the state’s total liabilities at Rs 2,92,220 crore at the end of 2018-19, estimated to be 20.75 per cent of the GSDP, though within the 25 per cent limit mandated in the Karnataka Fiscal Responsibility Act for FY 2019.
“All three fiscal parameters are within the mandate of the Act, reflecting the state’s fiscal prudence,” claimed Kumaraswamy in his Budget speech.
The Budget has proposed to waive crop loans up to a whopping Rs 34,000 crore, borrowed by 17 lakh farmers at the rate of Rs 2 lakh per family across the state till December 31, 2017.
On revenue account, however, the Budget estimated for this fiscal (FY 2019) a modest surplus of Rs 106.06 crore from Revised Estimates of Rs 383.84 crore and Budget Estimates of Rs 136.54 crore for fiscal 2017-18.
“The total receipts for 2018-19 are estimated to Rs 2,13,734 crore, including Rs 1,66,396 crore from revenue, Rs 47,338 crore from capital and Rs 47,134 crore from borrowings,” Kumaraswamy said.
He said that the total expenditure is estimated to be Rs 2,18,488 crore, comprising Rs 1,66,290 crore from revenue, Rs 41,063 crore from capital and Rs 11,136 crore from debt repayment.
The southern state’s tax revenue for FY 2019 is estimated to be Rs 1,06,621 crore, including Goods and Services Tax compensation, which is an increase of 16.25 per cent over the revised estimate of 2017-18.
As much as Rs 8,181 crore is expected to be collected from non-tax revenues. The state government expects to receive Rs 36,215 crore as its share of the central taxes and Rs 15,379 crore as grants from the central government.
The revenue receipts are estimated to be supplemented by gross borrowings of Rs 47,134 crore, non-debt capital receipts of Rs 75 crore and recovery of loans up to Rs 129 crore.
“The state-run boards, corporations and local bodies are expected to mobilise Rs 16,760 crore through internal resource generation and borrowings,” added Kumaraswamy, who holds the finance portfolio.
The GSDP in last fiscal 2017-18 grew 8.5 per cent from of 7.5 per cent in 2016-17.
“The agriculture sector is expected to grow 4.9 per cent, manufacturing 4.9 per cent and service sector 10.4 per cent in this fiscal,” added Kumaraswamy.