Budget evokes mixed reaction in northern K'taka

The Karnataka budget evoked mixed reaction in North Karnataka. While senior BJP leaders hailed it as a pro-people budget, economists have been cautious in giving it the thumbs up.

The Hubli arm of the Karnataka Chamber of Commerce and Industry has called it a populist budget.

Chamber president Shankaranna Munavalli and secretary Mahendra Laddad said that the finance minister while announcing the several schemes did not mention from where he would mobilise the resources. "In the absence of resources, it is difficult to believe that all schemes would be implemented," the KCCI said.

Noted economist N G Chachadi welcomed the sops to women and weaker sections but was unhappy with the loan waiver and reduction of interest rates. Chachadi welcomed the decision to increase old age pension and extension of Akshara Dasoha scheme (midday meal) to the children studying in VIII, IX and X.

Expressing his reservations on the decision to waive farmers' loans up to Rs 25,000, Chachadi said that though the move brought relief to the farmers it was not a permanent solution to their problems. "Loan waiver or providing loans cheaper will not be a solution. Instead, the government should have announced measures to ensure farmers a remunerative price for their produce. The government should establish mobile markets and purchase farmers' produce at their doorsteps. The government has the withholding capacity and by selling the produce after 2-3 months it would get a good price."

On the ban on sale of arrack, he said it would only push the poor into costly addictions or encourage manufacture and sale of spurious liquor. If at all the government wanted to curb the consumption of liquor it should have gone in for prohibition," he asserted. Taxing the IT sector and the TV advertisements could make up for the loss of revenue, he suggested.

Stating that allocation of Rs 1,500 crore for correcting regional imbalance was peanuts, Chachadi said the amount was not enough to implement the recommendations of Dr D M Nanjundappa Committee. Pointing out that the budget did not have much to protect rural people from heavy medical costs, Chachadi said the government should have introduced rural medical insurance scheme and provide better healthcare facilities.

Senior BJP vice president and former MLA Chandrakant Bellad was all praise for the FM. Describing the budget as the one aimed at welfare of the people, Bellad said Yadiyurappa has shown in his budget what a government committed to the welfare of people could do.

"The coalition government has fulfiled its promise to waive the loan, banning arrack and lottery and extending the midday meal scheme to children studying in higher classes. The measures to allocate more funds to irrigation, rural development, healthcare, minority development, primary education, development of roads and electricity generation are all indications of the government's commitment to the welfare of the people" he explained.

He said the government had kept up its promise by making budgetary provisions to its programmes while the previous governments only kept on making promises.

The farmers are delighted at the loan waiver. They are particularly happy that the interest for the loans if repaid before March 31 this year would be waived.