Highlights of the Karnataka Budget 2023

Salient features of the Karnataka Budget 2023

  1. The exemption limit for Professional Tax has been increased from Rs 15,000 to Rs 25,000 per month for salaried employees in order to provide relief to the lower middle class.

  2. CM has announced the launch of the Karasamadhana Scheme, which aims to provide relief to individuals with outstanding GST and excise tax arrears and penalties. The scheme offers a waiver of these charges if they are paid off before June 30.This initiative will help taxpayers clear their dues without the burden of additional penalties. Additionally, CM Bommai has also announced that the new scheme will apply to both GST and excise tax arrears and penalties.

  3. Among the major states in India, Karnataka has achieved the highest growth rate in GST collection. The state has surpassed its commercial tax collection target of Rs 72,000 crore for the 2022-23 fiscal year, having collected Rs 83,010 crore by the end of January. Additionally, Karnataka has received Rs 10,458 crore as GST compensation so far. Looking ahead, the state has set a commercial tax collection target of Rs 92,000 crore for the 2023-24 fiscal year.

  4. The Stamps and Registration Department had set a revenue collection target of Rs 15,000 crore for the fiscal year 2022-23. However, it is estimated that the actual collection will be Rs 17,000 crore. Looking forward to the next fiscal year, the department has set a revenue collection target of Rs 19,000 crore for 2023-24.

  5. CM announced that Karnataka attracted Rs 41.6 thousand crore of FDI in 2022-23 and exported products worth 75,439 million dollars. The state was also ranked as the top achiever in the Ease of Doing Business ranking list released by the Centre. Announced establishment of new industrial clusters in 9 places across the state by the Karnataka State Small Industries Development Corporation. The loan facility for women entrepreneurs in the service sector at 4% interest rate will be increased from Rs 2 crore to Rs 5 crore.

  6. New mega textile parks will be set up in Raichur, Kalaburgi, Vijayapur, and Chikkamagalur districts, and mini-textile parks will be established in 25 locations across the state under PPP, which is expected to generate employment for 25,000 people. The state is home to 40 unicorns worth about 163 billion dollars, and six startups in Karnataka obtained unicorn status in 2022-23. To enhance the state's preparedness for epidemics, a Centre for Epidemic Preparedness will be set up at a cost of Rs 10 crore.

  7. Several schemes and provisions for farmers, such as an increase in interest-free loans from Rs. 3 lakh to Rs. 5 lakh, the introduction of the Bhoo Siri scheme to benefit 50 lakh farmers, And Jeevan Jyothi Insurance scheme for farmers & families, the provision of 300 high-tech harvesters, an investment of Rs 10 lakh per Farmer Produce Organisations, the development of 1,000 small tanks, and the introduction of the Jala Nidhi scheme to improve groundwater under NREGA.

  8. Karnataka to start six ESI hospitals and 28 Community Health Centres and ten Women and Child Care hospitals.

  9. BMTC,KSRTC have added 1,311 & 50 e-buses respectively & plans are underway to increase the number of e-buses in the future. 4RTCs in the state will see the addition of 3526 new buses in 2022-2023, & the government has allocated Rs 500 crore to buy 1200 new buses in 2023-2024.

  10. In order to alleviate traffic congestion and enhance accessibility to the Sir MV terminal at Byappanahalli, the government has allocated Rs 300 crore to develop access roads.

  11. The 1st phase of the Bengaluru suburban rail project, which is worth Rs 15,767 crore, is currently underway and is expected to be completed in 2024-2025. The CG has provided a grant of Rs 1,350 crore, and the state government has provided Rs 1,000 crore in the current year. The work order for the Bengaluru suburban rail project, which runs from Chikbanavara to Byappanahalli (corridor 2) via ductwork, has been initiated at a cost of Rs 860 crore.

  12. Budget 2023 has set aside Rs 300 crore for the reconstruction of roads in 110 villages included in the BBMP limit. Additionally, 120km arterial roads in Bengaluru will undergo white-topping at a cost of Rs 1,000 crore. And The city will also witness the development of 300km of arterial and sub-arterial roads at a cost of Rs 450 crore.

  13. The monthly honorarium of anganwadi workers, cooks and assistants under midday meals, Asha workers and librarians to be increased by Rs 1,000

  14. To improve the health administration in Bengaluru, it is proposed to reconstitute the BBMP health administration system as “Bengaluru Health Systems

  15. Udupi and Dakshina Kannada to get Sri Narayana Guru Residential School at Rs 18 crore.

  16. The government has undertaken five new airport work in Shivamogga, Vijayapura, Hassan, Raichur and Karwar districts. Shivamogga and Vijayapura airport work will be completed in this year itself. Administrative approval has already been given for construction of Ballari airport under PPP model. Mysuru airport will be upgraded at a cost of Rs 320 crore.

  17. Mangaluru-Karwar-Goa-Mumbai waterway would be developed under PPP for general as well as commercial connectivity.

  18. Zero per cent interest for upto Rs 20 lakh per person for minority students undertaking UG/PG programmes in foreign universities having a global ranking within 250. Self defence training for girls of residential schools of department of minority welfare at the cost of Rs 2 crore.

  19. In 2022-23 under various schemes, development of state highways with the road length of 818km, district and other roads length of 1,093km and 135 bridges construction at a total cost of Rs 4,221 crore has been completed. A total of 1,008km state highway which completed its lifespan has been taken up for renovation at a cost of Rs 440 crore. By the end of March 2023, state highway road length of 948km, district and other roads length of 1,364km are proposed to be developed at a cost of Rs 3,720 crore.

  20. BMTC has added 1,311 e-buses and KSRTC 50-ebuses. Action will be taken to increase the number of e-buses in the coming years. Action was taken to add 3,526 new buses to four RTCs in the state during 2022-2023. The government will provide Rs 500 crore to buy 1,200 new buses in 2023-2024. The government has provided financial assistance of Rs 2,335 crore to RTCs in 2022-2023. In addition, MV tax dues of Rs 1,505 crore was exempted. A total of financial assistance of Rs 3,840 crore was provided to RTCs.

  21. To improve accessibility to Sir MV terminal at Byappanahalli access roads will be developed at a cost of Rs 300 crore to ease traffic congestion. A total of 40.1km length of Metro network will be operational in the current year. At present, 56km Namma Metro network is operational. Namma Metro Phase 3: Two corridors of 44.6km network with 31 stations have been submitted to the Central government at a cost of Rs 16.328 crore. Work will be taken up after the GOI approval.

  22. High powered Bengaluru Metropolitan Land Authority is constituted in order to coordinate the operations of various transport agencies and also to find out the scientific remedies to mitigate the traffic problems of the fast developing Bengaluru city.

  23. Entire fee of 500 students who have completed their school education in rural government Kannada medium schools and got selected for professional courses in government quota will be borne by Karnataka Examination Authority. One government degree college and polytechnic from each district having the highest attendance will be developed as Athyuttama Unnata Shikshana Samsthe by providing Rs 2 crore per institution. State govt to strengthen libraries and establish reading rooms in 24,347 schools in aspirational taluks at a cost of Rs 20 crore.

  24. Rs 100 crore set aside for construction of new schools in 23 aspirational taluks which do not have Karnataka Public Schools and for the development of functional 46 schools.

  25. Govt proposes a special package of Rs 100 crore to Kodagu district for development of Road network.Karnataka govt to employ 199 personnel to the newly created Elephant task force & Leopard taskforce

  26. 411km Bidar-Kalaburagi-Ballary Road will be developed as four-lane road with an expenditure of Rs 7,650 crore jointly by NHAI and state govt

  27. Academic Bank of credits and digilocker system in all higher educational institutions to be adopted soon.

  28. Yoga training in all govt women first grade colleges and polytechnic colleges in aspirational districts for boosting physical strength and confidence of girls.