Chief Minister Basavaraj Bommai termed the Union Budget as “growth-oriented” and said the State is expected to get an additional capital outlay of about ₹3,000 crore from the Centre in 2022-23.
In his reactions to the Union budgetary proposals, Mr. Bommai said the Centre’s outlay for capital expenditure to the State would increase from ₹26,000 crore in 2021-22 to ₹29,000 crore in 2022-23.
“The State is likely to get ₹3,000 to ₹3,500 crore to its capital account from the Centre. The actual figures will be known tomorrow or day after,” he said.
Capital expenditure
The outlay for capital expenditure in the Union Budget has been increased by 35.4% from ₹5.54 lakh crore in the current year to ₹7.50 lakh crore in 2022-23. Further, under the “Scheme for Financial Assistance to States for Capital Investment” the outlay was enhanced from ₹15,000 crore in the Revised Estimates in 2021-22 to ₹1 lakh crore to assist the States in catalysing overall investments in the economy. “These 50-year interest free loans are over and above the normal borrowings allowed to the states,” the budget said.
“This is a post-COVID budget. This is a forward looking budget and through this budget more investment will come and will fuel further growth of economy,” the Chief Minister said.
Striking balance
The Chief Minister said the Union Budget struck a balance between rural and urban growth by increasing outlays for both rural development and urban projects. The increased allocations for Jal Jeevan Mission, PM Awaz Yojana, PM Grameen Sadak Yojana and health would speed up economic recovery in the post-COVID period, he said.
Increased public expenditure on national highways, railways, digital economy and urban projects would fuel economic growth and create more jobs. The Centre’s commitment on reducing imports and promoting AtmaNirbharta in equipment for the armed forces by making 68% per cent of the capital procurement would provide a boost for the domestic industry, the Chief Minister said.
The Budget has given much needed support to MSMEs and the State’s small and medium industries would avail benefits. The Emergency Credit Line Guarantee Scheme (ECLGS) has provided additional credit to MSMEs. Extension of ECLGS up to March 2023 and increase in its guarantee cover from ₹50,000 crore to ₹5 lakh crore, would help MSMEs, hospitality and tourism enterprises, the Chief Minister said.
On Crypto tax
On imposing 30% crypto tax, the Chief Minister said, “This cryptocurrency is still at a nascent stage which has to be studied. Only after careful study we can really assess what is right and wrong.” Finance Minister Nirmala Sitharaman said that income from digital assets will be taxed at 30%.