CAs term Karnataka Budget average

Say chief minister presenting his 10th budget did not focus on infrastructure development

The Institute of Chartered Accountants of India-Hubli Chairman, Prakash R Kadur, has termed the State Budget average. The chief minister presenting his 10th budget did not focus on infrastructure development.

He has announced a series of programmes to uplift the Schedule Castes and Tribes, and the Backward Castes, which is a welcome feature. He has also announced a series of programmes for the agriculture sector and allocated a considerable amount for supporting agricultural and related activates.

However, when it comes to industry and commerce, there is no focus on industrial development. There are no specific programmes or agenda for inviting large industries to set up their units in Karnataka. The higher rate of tax at 14.5 per cent was expected to be reduced in line with the neighbouring states where nothing has been touched upon. This is only increasing the burden on the common man.
 

CA G Shivakumar welcomed the reforms announced and allocation of funds for the overall development of the backward classes. He also welcomed the security measures taken at women's hostels, free distribution of shoes and socks to schools.

He also appreciated the scholarship to students pursuing various courses. He expressed his dissatisfaction at not much being done on production and distribution of power. The budget lacks concrete measures in increasing the production of electricity and continuous supply of power to agricultural sector.

He also welcomed the free distribution of medicine at all hospitals. He applauded the project to plant trees, on both sides of 3,000 kms of roads. This will increase the awareness to control pollution. He also appreciated the finance minister's initiative and stress on development of solar energy. At the outset, the budget was an average budget.

CA Suresh K Chenni, past chairman, expressed that this budget has given some relief by reducing the age limit for the tax liability under the Profession Tax and increasing the exemption limit to Rs 15,000 is a welcome feature. He also appreciated the chief minister for raising the limit from Rs 7.5 lakh to Rs 10 lakh for registration under KVAT Act 2003. When it comes to the tax administrative reforms, nothing has been touched upon.

Currently, the penalties and interest under the KVAT provisions are stringent and heavy.

Reforms were expected to make the tax administration more friendly and convenient to small and medium traders.

The liquor business sector were expecting some uniformity in taxation of liquor, but nothing has been rationalised in this budget. Therefore, the budget is below par from the expectations of a common man.