Goodies galore for farmers, govt employees in Karnataka budget

Bangalore, Mar 21 (PTI) Ahead of assembly polls, the Karnataka government today announced a slew of budget proposals, including interest-free crop loans, reduction of stamp duty on sale deeds besides accepting pay commission recommendations. Presenting a budget that exceeded Rs 1 lakh crore in size for the first time, Chief Minister D V Sadananda Gowda, who also holds the Finance portfolio, announced there would be zero per cent interest for short-term crop loans of up to Rs 1 lakh obtained through cooperative institutions. The rate of interest on loans up to Rs 3 lakh was reduced to 1 per cent during 2011-12. 

The government also proposed to establish hire-service centres for farmers to hire tractor and other high-tech implements on rental basis. The budget allocated Rs 19,660 crore for agriculture and allied sectors, in the 2012-13 budget presented in the Legislative Assembly today. Gowda also hiked the total outlay for welfare of backward classes to Rs 1,000 crore for 2012-13 from Rs 760 crore in the previous fiscal. There was good news for about 5.5 lakh government employees with Gowda announcing acceptance of recommendations of a commission on pay and pension revision with 22.5 per cent increase in basic pay. This would be effective from April 1, leading to an annual burden of Rs 4,450 crore. With elections due in the state in May next year, Gowda first presented a separate agriculture budget, before tabling the general one. He sought approval for vote on account till July 31. The budget also proposed reduction in sales tax by 1.25 per cent on diesel and continuation of tax exemption on rice, pulses, wheat and other food-grains. It also exempted partnership firms from agricultural income tax. Gowda said the additional excise duty on beer and low alcoholic beverage would be increased by 7.5 per cent. The government proposed to levy value added tax at five per cent on beedies and plastic woven fabrics and increase VAT on cigarettes and other tobacco products from 15 to 17 per cent. It also proposed to reduce the stamp duty from six per cent to five per cent on conveyance/sale deeds, and also in stamp duty on joint development agreement from six per cent to one per cent with a limit of Rs 15 lakh.