Published On : Fri, Mar 18th, 2016

Karnataka Budget 2016: A mixture of favourable and unfavourable facets for citizens


Karnataka Budget
Petrol, diesel, beer, liquor and soft drinks will be costlier in Karnataka from April 1, as the state budget for the coming fiscal (2016-17) seeks to hike various taxes on them.

Amidst concerns of economic slowdown, Karnataka Chief Minister Siddaramaiah on Friday presented the budget for 2016-17 with the lone agenda of development.

Free from electoral politics at least for this year, Siddaramaiah presented ‘please all’ budget close on the lines of Union Budget, with special focus on industry, infrastructure and urban development that would project Karnataka as a major destination for entrepreneurs, with an outlay of Rs 1,63,419 Cr, CM is confident of bringing back the economy on track during this fiscal year.


Cutting down on dolling out more and more freebies to woo people, Siddaramaiah seems to have focused more on revenue mobilisation in the backdrop of slackening economic growth rate from 7.8 per cent during 2014-15 to 6.2 per cent in 2015-16.

Siddaramaiah presenting 11th budget of his political career chose to allocate enough funds for the on-going projects rather than announcing new programmes.

Taking pride in being the IT capital and Start-up capital of the nation, Siddaramaiah has proposed several new direct and indirect initiatives to further promote the growth of Start-ups.

Dedicated incubation centres will be set up near to Bengaluru to promote tech capital while incubators to nurture bio-tech start-ups will be set up at Bagalkote district, the home turf of IT, BT minister.

Promoting more and more women entrepreneurs across Karnataka, dedicated industrial parks exclusively for women will be set up this year.

Losing bitterly, last year, in the Corporation polls, Siddaramaiah seem to have made prompt effort to win over Bengalureans by proposing to decongest IT corridors with efficient public transport, upgradation of open street event to international standards to woo tourists.

Facing brickbats over poor monitoring of water bodies, Siddaramaiah also announced rejuvenation of frothing Bellandur and Varthur lakes by levying Lake Development cess through Karnataka Pollution Control Board.

Attributing the slow pace of economic growth to unprecedented drought, Siddaramaiah has chosen to abolish agriculture income tax, a long pending demand of coffee, rubber and tea planters of Karnataka.

Giving big time relief to people of North Karnataka, Siddaramaiah has reduced value added tax on food items made of staple crops like Ragi, Jowar. Giving relief to common public, CM proposed to reduce tax on helmets in the wake of Supreme Court’s order on mandatory wearing of helmet.

2 power cuts while giving budget speech

There were two power cuts while CM Siddramaiah was giving the budget speech. And apprently BESCOM was held responsible.

Most highlighted points which effect common man

What pinches you more under Siddu’s regime?

– Petrol, Diesel prices to shoot up with a tax on petrol increased from Rs 26% to 30% and diesel from 16.65% to 19%.
– Excise duty on IML Liquor increased from Rs 45 to Rs 50 and Rs 5 to Rs 10 on beer.
– Additional Excise Duty on IML increased from 4% to 12% and 135% to 150% on beer.
– VAT on Softdrinks increased from 14.5% to 20%.
– DTH and Cable network to cost more with Entertainment tax increased from 6% to 10%.

Relief measures!

– Helping Diabetic patients, Ragi Rice (Processed Ragi) exempted from VAT.
– Rotis made of jowar and ragi that sell like hot cakes across Bengaluru have also been exempted from VAT.
– Aluminium utensils except pressure cooker and cutlery have been exempted from VAT.
– Products of handmade paper have been exempted from VAT limits.
– VAT levy on all kinds of Chatnipudis reduced from 14.5% to 5.5%.
– Coming to the rescue of ailing senior citizens, VAT on adult diapers reduced from 14.5% to 5.5%.

(With inputs from agencies)