From Big Grant To Bengaluru Suburban Rail To Stamp Duty Reduction: Here Are Karnataka Budget's Top Infra Announcements

The Karnataka Budget for 2021-22 was presented in the State legislature today, marking the BJP government’s second full-fledged Budget in this term.

Yediyurappa, who also holds the finance portfolio, announced a number of measures and allocations in the state budget. Here are the key takeaways:

Bengaluru gets 7,795 crore for development: In his budget speech, Yediyurappa announced a total allocation of Rs.7,795 crore in the year 2021-22 for the development of Bengaluru city. A grant of Rs.850 crore has been announced in the year 2021-22 for Bengaluru sub-urban rail project. “The expeditious completion of second terminal building of Kempegowda International Airport; increase in the maximum annual passenger capacity to 60 million,” he said. “Implementation of K-100 project at an expenditure of Rs.169 crore to develop Koramangala Valley as a tourist attraction. Development of Bengaluru Signature Business Park of international standards near Kempegowda International Airport,” he added. The CM announced a 105-acre tree park at Byappanahalli, and 'Experience Bengaluru Centre' at Malleshwaram. Additionally, the state government will float 'Swiss Challenge' tender to take up peripheral ring road works around Bengaluru. State's 'Jaladhare' scheme will be integrated with Centre's 'Jala Jeevan Mission'. Bulk water supply will be provided to villages from permanent water sources at a cost of Rs 25,740 crore. He also proposed a 2 per cent cut in stamp duty for apartments valued between ₹35-45 lakh to boost real estate sales. In a first, maps containing details of forest types and density in Karnataka state with 50-centimetre satellite resolution will be prepared, announced CM. A property registration pilot project using blockchain will be implemented at a cost of Rs 1 crore, with the help of IIT Kanpur to prevent cheating and document tampering. Unified land management system to be developed. Chief Minister Mega Integrated Industrial Townships to be developed along Bengaluru-Mumbai and Bengaluru-Chennai industrial corridor on a minimum of 500-acre land. Investment of around Rs 10,000 crore is expected in the townships over three years. CM Yediyurappa announced that his government will be setting up goshala in each district in the state ‘to prevent slaughter of cows and to conserve livestock'. He announced the construction of a ‘Yathri Nivasa’ in Ayodhya, Uttar Pradesh for devotees from Karnataka visiting the temple town, allocating Rs 10 crore in 2021-22 Budget. He said that the UP government will provide 5-acre land for the purpose. The CM also stated that there will be no increase in state tax on petrol or diesel to avoid financial burden on the people The chief minister also announced a 3,000-crore fund for reviving lakes and ponds across Karnataka. Yediurappa also said that the grants for Kalasa-Banduri projects will be provided this fiscal, and all clearances to implement them will be obtained. Apart from this, Rs 5,600 crore will be provided to Krishna Bhagya Jala Nigama for irrigation works, and the land acquisition hurdles for Yettinahole Project will be cleared, he said, adding that all the APMCs in the state will be computerized at a cost of Rs 198 crore. Another budget announcement was that the government will set up well-equipped flower market at a cost of Rs 50 crore at Byappanahalli, and a dry chili market under PPP model by Ballari APMC. To encourage ayurvedic medicine in veterinary science, a new research institute at a cost of Rs 2 crore at Veterinary College, Shivamogga will be set up. Also, Rs 30 crore will be allocated to set up fish sale units and Matysa Darshinis. The chief minister announced that Rs 500 crore will be allocated for the benefit of food start-ups to encourage organic farming. A new food park will come up in Vijayapura, and a Horticulture Technology Park at Koppal district. The Karnataka government also plans to increase the reservation for farmers’ children from 40 per cent to 50 per cent in the Agriculture University. For small food processing units, he announced, the government will increase subsidies to 50 per cent for which a sum of Rs 50 crore will be set aside. CM Yediyurappa said that the Safe city project will be speeded up, and 7,500 CCTV cameras will be installed in Bengaluru, and tech-based e-beat will be carried out during night hours to ensure women's safety. He also announced special women bus pass Vanitha Sangathi with rebate and also special loan up to Rs 2 crore with 4 per cent interest rate for women entrepreneurs. Karnataka government, in its Budget, said that the revenue deficit is estimated to be Rs 15,134 crores during financial year 2021-22.

The CM also said that the floods in northern Karnataka and COVID-19 pandemic had adversely affected the economy, shrinking the state’s GDP by 2.6 per cent compared to 2019-20.

He further said that despite the floods the state had recorded the highest production of food grains and the agriculture sector had registered growth, while industry and service sectors had taken a hit.