Bangalore: Karnataka Chief Minister BS Yeddyurappa Thursday presented a surplus budget for fiscal 2011-12, with tax proposals to mobilise an additional Rs 1,020 crore.
Presenting the budget in two parts, with a separate budget for the agriculture sector for the first time, in the assembly here, Yeddyurappa said that as per the revised estimates, revenue surplus would be Rs.1,595 crore and fiscal deficit would be Rs.11,700 crore or 3.07 percent of the gross state domestic product (GSDP).
To raise additional funds for meeting increasing developmental expenditure in the new fiscal, the chief minister doubled the value added tax (VAT) on jewellery and articles of gold and other metals to two percent from one percent.
VAT rates on these goods are currently taxable at 13.5-14 percent.
"Similarly, I propose to double the betting tax on horse racing to eight percent from four percent and excise duty to 20 percent from 10 percent across the 17 slabs," the chief minister, who also holds the finance portfolio, said in his hour-long budget presentation in Kannada.
VAT exemption on paddy, rice, wheat, pulses and other agriculture products, will continue in the new fiscal. Coconut and de-oiled rice bran will also be exempted from VAT.
As part of resource mobilisation efforts, the chief minister also sought to levy a fixed stamp duty of Rs.1,000 on trusts set up for the public, religious and charitable purposes.
"Stamp duty on trusts other than public, religious and charitable trusts will be levied at six percent on transfer or disposition of property. I propose to raise Rs 300 crore from the proposals on stamps and registration," Yeddyurappa said.
To allocate Rs 20 crore every year for urban transport fund, the budget proposes to raise the cess by one percent to 11 percent with no changes in the motor vehicle tax.
Total receipts for this fiscal (2010-12) are expected to be Rs 83,729 crore, including Rs 66,313 crore from revenue and Rs 17,416 crore from capital, while total expenditure is estimated to be Rs 85,319 crore comprising Rs 65,034 crore as revenue outgo and Rs 20,285 crore as capital outgo.
"We have seen buoyancy in tax collections this fiscal. We have collected Rs 38,049 crore from various taxes as against the estimated Rs 36,228 crore, registering 24.4 percent increase over the previous fiscal (2009-10)," Yeddyurappa told the members.
With additional resource mobilisation of Rs 1,020 crore, the total tax collection in the new fiscal is estimated to be Rs 43,817 crore.
For the new fiscal, the revenue surplus is estimated to be Rs 1,279 crore and fiscal deficit Rs 12,482 crore, which will be 2.87 percent of GSDP.