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Bengaluru: Fulfilling poll promise to cost new govt Rs 62,000 cr
Congress has won the Karnataka assembly elections with a majority. There are many different factors behind this big win.
Bengaluru : Congress has won the Karnataka assembly elections with a majority. There are many different factors behind this big win. The promise of freebies given by the party has attracted people and the pressure is on the new government to live up to its promise.
Regarding the ‘free scheme’ given in the manifesto, cash payments to the beneficiaries and implementation of the free electricity scheme will cost the state government Rs 62,000 crore per year. Some calculations say that about 20% of the budget is needed for ‘freebies’. This huge ‘burden’ will definitely have a huge negative impact on the state budget.
The amount that the government can spend on major freebies is as large as the fiscal deficit of the previous financial year. In Karnataka’s budget 2023-24, the fiscal deficit for 2022-23 is expected to be Rs 60,581 crore. This is 2.60% of Gross State Domestic Product (GSDP).
On the question of how the money will be allocated for giving free schemes, AICC general secretary in charge of Karnataka Randeep Singh Surjewala explained to a media that, “The implementation of freebies by the Congress will not cost more than 15 percent of the state budget. Also, the size of the state budget is expected to increase in the next 5 years,” he said.
Karnataka is economically sound and has recorded strong income growth. The outgoing BJP government had presented a revenue surplus budget. Karnataka has recorded the highest growth rate among large states in GST collection. The revenue collection target for 2022-23 was set at Rs 72,000 crore. Excluding GST relief, revenue collection of Rs 83,010 crore was achieved by the end of January. This is 15% more than the budget estimate. However, the state’s debts are a matter of concern.
While Karnataka’s economy is poised to grow big in the coming years, the Rs 62,000-crore ‘free fortune’ could create a problem. The Congress has also promised to provide 10 lakh jobs and fill up 2.5 lakh vacancies across government departments. This will increase the salary bill of the state. These factors will also burden the government financially.
Congress’ important guarantees: 2,000 monthly assistance to each woman in the family. Rs 1,500 per month for each unemployed diploma holder. And an allowance of Rs 3,000 per month for graduates. Free travel for women in state government buses. 200 units of free electricity for every family in the state.
What are the other promises?
500 liters of tax free diesel every year for deep sea fishing, 6,000 to all sea fishermen during fishing holidays, Promise to set up compost/manure centers in villages involving rural women/youth and Promised to buy cow dung at Rs 3 per kg.
