Rs 55.26cr deficit budget for Karnataka

bangalore: karnataka chief minister s m krishna on thursday presented a rs 55.26 crore deficit budget for the year 2002-03 without proposing any major fresh levies. in a bid to give further thrust to it sector, krishna who also holds the finance portfolio, proposed reduction of taxes on it products to four per cent. he withdrew four per cent tax concession granted to certain high-value canteen store goods. krishna proposed a five per cent hike in taxes on bangalore turf club’s and mysore turf club’s on-course and off-course betting operations, a measure that would yield rs 11.55 crore additional revenue. the chief minister also sought a vote on account for a period of four months ending july 31. krishna said the total receipts were expected to be rs 25,542.05 crore comprising revenue receipts of rs 18,798.45 crore and captial receipts of rs 6743.60 crore. “the total expenditure was estimated to be rs 25,597.31 crore, out of which the revenue expenditure would be rs 21,403.64 crore and capital expenditure rs 4193.67 crore." he said apart from the major tax revenues, the government expects to raise rs 1890 crore from small savings, rs 948.48 crore from market borrowings (net), rs 500 crore from negotiated loans and rs 2417.75 crore as total loans from the central government. krishna said the revenue deficit works out to rs 2605.19 crore and the fiscal deficit comes to rs 5839.07 crore. pointing out that the overall deficit of rs 55.26 crore was expected for the year, the chief minister said the total deficit balance was estimated to be rs 153.28 crore after taking into account the opening deficit balance of rs 98.02 crore. krishna said he expected to cover this deficit through expenditure control and buoyancy of taxes during the year.krishna outlined various measures as part of his government’s continued exercise for rationalisation of tax by proposing to abolish turnover tax and cess. he announced abolishing of entry tax now levied at one per cent on raw materials, packing materials and other inputs excepting those used in tobacco products and liquor. krishna said, the abolition of multiple levies and simplification measures would help set the stage for introduction of vat. in the wake of rationalisation of tax structure, krishna proposed to abolish the rate slab of 10 per cent and regroup most of the commodities under 2 per cent, 4 per cent, 8 per cent, 12 per cent and 15 per cent categories.