Karnataka Chief Minister DV Sadananda Gowda presented a Revenue Surplus Budget for 2012-13

Karnataka Chief Minister DV Sadananda Gowda tabled a revenue surplus budget on 21 March 2012 in the Karnataka Assembly. The Chief Minister, who also holds the finance portfolio, made several provisions keeping the common man of the state in mind.

The chief minister who also presented a separate agriculture budget for 2012-13 in the assembly announced that rate of interest on short term crop loan of up to 1 lakh rupees would be reduced to zero from 2012-13 even as it earmarked 1660 crore rupees for agriculture and related allied activities.

Some major provisions of Karnataka Budget 2012-13 are as follows:

•    Gross expenditure for 2012-13 projected at 102742 crore rupees
•    An increase of 20.42 per cent over the Budget of 85319 crore rupees in 2011-12
•    First time the Budget size has exceeded 1 lakh crore rupees
•    Revenue surplus is estimated to be 931 crore rupees
•    Fiscal deficit at 2.94 per cent of the GSDP stands at 15312 crore rupees
•    Recommendations of the official pay committee for government employees would be given effect from 1 April
•    The total additional outgo on account of the pay and pension revision is estimated to be 4450 crore rupees  on a full year basis
•    Sales tax on diesel to be reduced to 16.75 percent from 18 percent
•    Increase in VAT for tobacco products
•    Additional excise duty on Indian made liquor (IML) like beer and low alcoholic beverage by 7.5 percent to 10 percent across 17 slabs
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