Karnataka budget announces 34,000 crore farm loan waiver, increase in taxes on fuel

Bangalore,jul 05:
Karnataka Chief Minister H.D. Kumaraswamy on Thursday presented the Congress-JD(S) coalition government’s maiden budget, announcing farm loan waiver worth ?34,000 crore.
The budget, however, has increased the rate of tax on petrol from the present 30% to 32%, hiking petrol prices by ?1.14 a litre and the rate of tax on diesel from the present 19% to 21%, hiking its price by ?1.12 a litre.
In the run-up to the recent Assembly polls, the Kumaraswamy-led JD(S) had promised to waive farm loans borrowed both from cooperative and nationalised banks within 24 hours of coming to power.
“Farmer and Rural Economy-oriented Budget”
Bangalore Chamber of Industry and Commerce (BCIC) termed the Karnataka State Budget as a “Farmer and Rural Economy-oriented Budget” as the new Congress-Janata Dal (Secular) coalition Government proposed waiver off crop loans upto ?2 lakh and allocated ?150 crore for adopting Israel-model for crop development in the State.
Farmers hail announcement on zero budget natural farmingKarnataka Natural Farmers Association has welcomed the budget announcement to support zero budget natural farming (ZBNF). The association president Ishwarappa Chakote and member Chandrashekar Kadadi told The Hindu that this would be a long-term welfare measure for farmers.”I have been practicing ZBNF for 20 years now. My cost of cultivation has reduced significantly while the returns have improved steadily. It can be practiced in all agro-climatic zones,” Mr. Kadadi said.Soon after budget presentation, MLAs from the coastal districts raised objections saying their region has been paid no attention. One MLA held up a placard expressing displeasure over this.
The budget announces that three public industries that have making profits for many years now will issue IPOs and go public this year. However, the budget doesn’t name these 3 public industries.