Karnataka projects deficit budget for new fiscal

Karnataka on Friday projected a deficit budget for ensuing fiscal 2015-16, as disbursements are set to exceed revenue receipts.

"We will end this fiscal (2014-15) with a surplus of Rs.10.18 crore (revised estimates), but enter new fiscal (2015-16) with a deficit budget estimate of Rs.1,301.41 crore, as disbursements are likely to be Rs.23,736.29 crore and receipts Rs.22,434.88 crore on capital account," Chief Minister Siddaramaiah said here.

Presenting the budget for new fiscal (FY 2016) in the state legislative assembly, the chief minister said the overall deficit will, however, be Rs.390.77 crore due to revenue surplus of Rs.910.64 crore (budget estimate) for 2015-16.

As the budget for this fiscal (FY 2015) is set to end with a overall surplus of Rs.256.51 crore, budget deficit for FY 2016 is estimated to Rs.143.26 crore.

The state's total tax collection is set to increase 21 percent in new fiscal (2015-16) to Rs.101,235 crore over the revised estimate of this fiscal (2014-15).

Of the total tax receipts, Rs.46, 250 crore (61 percent) is expected to come from commercial taxes, Rs.15,200 crore (20 percent) from excise duty, Rs.9,200 crore (11 percent) from stamps and registration, Rs.4,800 crore (six percent) from motor vehicles and Rs.1,995 crore (three percent) from other sources.

"Total receipts are estimated to be Rs.139,476 crore for FY 2016, including revenue receipts of Rs.116,360 crore, capital receipts of Rs.166 crore and borrowings to the tune of Rs.22,950 crore, Siddaramaiah told the lawmakers.

Total expenditure is estimated to be Rs.142,534 crore, including revenue expenditure of Rs.115,450 crore, capital expenditure of Rs.20,564 crore and debt repayment of Rs.5,788 crore.

"Though revenue surplus is estimated to be Rs.911 crore, fiscal deficit is expected to be Rs.20,220 crore, which is 2.75 per cent of the gross state domestic product (GSDP)," Siddaramaiah added.

Siddaramaiah, who also holds the finance portfolio, presented a record 10th budget during his three-decade long political carrier, with three consecutive years as the ruling Congress chief minister and seven times as deputy chief minister of the Congress-Janata Dal coalition government in 2004-05 and of the Janata Dal (United) government in 1994-99.