Karnataka Abhivriddhi Ranga the coalition government has come to power with the objective of developing the state.

      Aim of the new coalition government- Clean, efficient and responsible governance, Social Justice, to take Karnataka to a forefront amongst the states of the Indian union, improve the states infrastructure and quality of life and to bring peace, prosperity and contentment to its citizens.




      GDP growth of the country-8.1 % during 05-06 fiscal, Karnataka expected to grow at 8.7%  -primary sector at 6.3%, secondary sector at 5.7% and the tertiary sector           at  11.2 %.

      Inflation rate of Karnataka is expected to be about 4.4%, which is less in comparison to 4.7% of the country.

      Fiscal correction contributed to growth by generating surpluses in revenue account and spending it on capital formation. Fiscal deficit under control has ensured sustainability and a growth of 8% is expected for the coming year.

      Time to increase the technical and allocative efficiency and cost effectiveness of public expenditure.




      State taxes expected to meet their respective budgetary targets. R.E for States own taxes are Rs. 19504.80 Crores as compared to the B.E of Rs. 18680.16 Crores. Revenue loss on account of introduction of VAT is Rs 1041 crores. Loss on account of implementation of VAT was expected and the system will get stabilized over next two years.

      State will end with a surplus on revenue account and a fiscal deficit of less than 3% of the GSDP

      Because of Fiscal reforms State has got fiscal incentive and debt consolidation benefit amounting to Rs.374 Cr from Eleventh and Twelfth Finance Commissions. May get debt waiver benefit also.




      Collection of revenues, preventing revenue leakages, and reducing the non-plan expenditure by 5% are three priorities.

      Shift to a Defined Contribution Scheme for new recruits.

      Rules will be framed under The Karnataka Ceiling on Government Guarantees Act

      Extension of budget control mechanism to Zilla and Taluka Panchayats

      To review the efficacy of Grant In Aid provided to the educational institutions and hostels

      Title insurance so that the guarantee to the title is assured

      To put in place a single unified e- procurement platform

      Gender Budget Cell to be set up in the Finance Department




      Pancha Suthra programme for accelerated growth in agriculture.

      Exemption to individual farmers from Agricultural Income Tax.

      Constitute a Committee of Agricultural Experts to make recommendations on reorienting and modernization of our agriculture. 

      Strengthening the corpus of revolving fund from Rs 200 crores to Rs 240 crores to undertake procurement operations.

      Rs 20 crore earmarked for promotion of Bio-Fuels.

       Rs.20 Cr earmarked for Agro-Processing units.

      Increase in seed subsidy from the present level of 50%           to 75%.

      Rs. 4.8 crore for Soil Testing Kits at the Raita Samparka Kendras

      Rs.8 Cr for promotion of organic farming.

      Rs 30 crore for providing 10 tractors, 10 mini tractors and 20 tillers in each taluk at 50 % subsidy to the small and marginal farmers.

      Rs 5 crore for providing 50 % subsidy for the purchase of bullocks and bullock carts by small and marginal farmers.




      High-level committee to review the on going programmes.

      Rs. 50 crore for 50,000 farm ponds under Suvarna Krishi Honda in the lands of the small and marginal farmers




      National Horticultural Mission programme at an estimate of Rs 85.21 crores to be effectively implemented

      Rs 20 crore earmarked to promote processing of horticultural crops.

      Rs 10 crores as grant to KAPEC for improvement of infrastructure to promote agricultural exports.

      Wine manufacturing policy to be evolved.

      Scope of the ongoing drip irrigation scheme to be expanded and Rs. 44 crore to be provided for this purpose.

      Rs 5.75 crores to provide long-term support for the development of horticultural farms.

      Advanced center for research on Organic Farming to be established at Shimoga.




      Rs 8 crores for starting of new dispensaries in all-39 most backward talukas of the State.  Rs.20 crores allocated to ensure availability of veterinary medicine in sufficient quantities.

      To start a new Government Veterinary College at Shimoga

      To establish a rural management training center on the lines of Institute of Rural Management and Administration (IRMA).

      Rs.11 Cr for rejuvenation of milk unions in Northern Karnataka




      10,000 houses to be constructed for the fishermen in the current fiscal

      55,000 KL of tax-free diesel being given to motorized boats to be increased to 70,000 KL.

      Arrangements to enable the fishermen to get loans at 4%. 

      Compensation given to fishermen who suffer in accidents is raised from Rs.25, 000 to 50,000.

      One lakh women will be covered under the scheme of Matsya Mahila Swavalambana Yojane




      Rs.720 Crores earmarked for food subsidy. Computerised cards with bio metric identification system to be issued.





      All encroachment of revenue lands in rural areas for agricultural purpose except for forestlands and gomal lands upto a limit of 2 hectares to be regularized

      Bhoomi to be extended to 740 hoblis all over the State.

      Destitute widows and disabled persons monthly pension to be increased to Rs.200 per month.

      Rs. 20 Crores provided under National Family Benefit Scheme

      An assistance of Rs.1,000 for performing the last rites of a person who is from a BPL family.

      Crop compensation given for crop losses under natural calamities to be doubled.

      Aradhana Scheme assistance to be doubled.

      Tasdik Allowance and Annuity to be doubled with a minimum of Rs. 500. 

      Expert Committee for effective management of temple

      Construction of 300 new rooms at Thirupathi to be undertaken. 

      Karnataka Samskruti Samrakshana Pradhikara to renovate and protect temples symbolic of our culture and use it for development of tourism. 

      Basavakalyana to be developed at a cost of Rs.20 Crores.  Basvanna Bagevadi, to be developed by Koodalasangama Abhivrudhi Pradhikara

      Construction of 30 new Mini Vidhana Soudha to be taken up.




      Last date for payment of principle under interest waiver scheme to be extended up to 30th April 2006. 

      Agricultural loans to farmers at 4%. 

      Yashaswini scheme cover all members of all the rural co-operatives




      Plan outlay for this sector to increase by 46% from Rs.439 Cr to 640.7 Cr in the year 2006-07.

      Unit cost to be increased from Rs.75000 to a maximum of Rs.1 lakh under Ganga Kalyan programme. Outlay on this scheme increased from Rs.42 Cr to Rs.95 Cr for SC/STs, Rs.10 Cr to Rs.23.50 Cr for Backward Classes, Rs.8 Cr to   22 Cr for minorities

       Unit cost under Land Purchase Scheme to be linked to guidance value brought out for registration purposes.

      20 new Morarji Desai Residential schools for Scheduled Castes and 5 residential school for Scheduled Tribes, 20 for Backward Classes and 5 for Minorities to be opened.  Outlay of Rs.31 Cr for construction of residential schools for SC/STs ,9 Cr for minorities.

      50 new hostels for SCs and 10 new hostels for STs and 50 for backward classes.

      A scheme of differential interest for loans provided at 4 % by KSFC.

      Outlay on minority welfare increased from Rs.22.72 Cr to Rs.83 Cr



      Rs 16 crores for essential drugs

      Upgradation of all taluka hospitals in a phased manner as 100 bed hospitals.

      Health insurance facility to all the landless agricultural labourers below the poverty line in Karnataka under the new scheme called Suvarna Suraksha

      National Universal Health Insurance Scheme to be implemented.

      Rs 43.33 crores for 6 new medical colleges.




      Allocation to Primary education in 06-07 is Rs.4,466 crores and it is 12% higher than the allocation in 05-06.

      Bicycle at government cost to all the girls from families below poverty line who have passed seventh standard and are enrolled to the eighth standard. 




      Starting of Government First Grade colleges in seven districts.

      Science departments to be opened in seventeen Government First Grade Colleges.

      Kittur Rani Chennamma Puraskara to merited girl students.

      Fees in professional course of merited student from a BPL family to be met by the Government




      The size of the district sector in 2006-07 has increased to Rs.2,354 Crores.  In 2005-06 it was 2002 crores.

      Allocation towards rural drinking water supply has been increased to Rs. 750 crores

      Rs. 15 crores to be provided under Nirmala Grama Yojane for providing sewerage facility.

      PURA to ensure homogeneous and integrated development. 





       Bhagya Lakshmi- girl child born would be eligible to get Rs.10,000 in her name to be redeemed after 18 years. Rs.234 Crores provided.

      11,313 new Anganwadis to be started. Allocation on nutrition increased from Rs 140 crores in 05-06  to Rs 242 crore. Monthly honorarium to Anganwadi workers to be increased by Rs. 100 and by Rs. 50 for the worker.

      Rs 20 crore for Stree Shakti programme




      Three lakh houses to be completed during 2006-07. Unit cost of houses increased from Rs 20,000 to Rs 25,000

      Houses under Valmiki Ambedkar Awas Yojana. by spending Rs.110 Crores.




      Rs. 136.08 crores to be given as subsidy for concessional travel.

       Driving Testing Tracks to be constructed in all districts in a phased manner.




      State Government to implement the Building and Other Construction Workers (Regulation of Employment and Condition of Service) Act, 1996 and the Building and other construction workers Welfare Cess Act, 1996.  A State Welfare Board will be set up

      104 ITIs to be modernized. 32 new trades in the ITI s.




      Allocation to Irrigation works during 2006-07 is Rs. 2,972 Crores over Rs. 2,608 Crores in 2005-06




      Rs.672 Crores allocated. Compared to 2005-06 the allocation to Minor Irrigation is 53% more. 




      Rs.2,382 Crore earmarked for Public Works with increase of 50% over last year.

      Rs. 607 Crore for repair and maintenance of PWD Roads

       For construction and maintenance of PWD roads, Rs.50 Lakhs per assembly constituency provided. 

      Roads around Bangalore to be developed in the next three years at a total cost of Rs.600 Crores. 




      Tourist infrastructure of world class at affordable rates is to be developed at important tourist destinations. Rs.40 Cr allocated for the same




      Suvarna Karnataka to be celebrated. Number of programmes chalked out.






      Subsidy for 30 good films instead of 20. Rs.10 lakhs to be given as subsidy




      New Industrial Policy to be announced very shortly.

      Industrial investment subsidy to be provided.

      25 layouts across the state with emphasis on backward areas to be developed

      Modernisation of Khadi and Village Industries to be taken up

      Agri export zones for Maize to be developed




      Catalytic Development Programme at an allocation of Rs.20.75 Cr.

      Comprehensive scheme by name Reshma Vardana Yojane




      Power subsidy to power looms of 10HP to 20HP capacities, benefit of reduction in interest and penal rate to be extended to the loans taken from Urban Cooperative Banks, loans to weavers at 4%. Rs.50 Cr allocated for this.

      Textile Parks to be set up.




      Rs.682 crores for urban infrastructure services and sum of Rs.48 Cr for basic services for urban poor under JNUURM.

      Rs 45 crores under the centrally sponsored programme of Urban Infrastructure Development Scheme for Small & Medium Towns (UIDSSMT)

      Augumentation of water supply in Bangalore City and the surrounding areas, under Cauvery 4th Stage (Phase-II) at an estimated cost of Rs.3384 crores.

      Bangalore Metropolitan Parking Authority to be created to plan and develop vehicle parking lots in Bangalore.




      Rs.937 Cr for infrastructure in 10 coastal towns under KUDCEM Project, Rs.1800 Cr in 25 cities and towns of North Karnataka under the ADB assisted Project, Karnataka Municipal Reforms Project at a cost of Rs.1,149 crores.  Provision for infrastructure facilities in the identified 20 towns and Rs.237 crores for water supply augmentation in 3 city corporations of Karnataka namely Hubli-Dharwad, Gulbarga and Belgaum.

      Karnataka Urban Water supply and Drainage Board to commission 15 Water Supply Schemes & 7 UGD schemes for the year 2006-07.

      Urban land bank to be created.

      Metro Rail Project to be implemented

      Budgetary support for Airport Infrastructure projects increased.

      Allocation to Railway projects in 2006-07 increased.




      State Wide Area Network for connecting important Government offices at State, district and taluk level to be    set up. 




      Ultra Mega Power Project of 4,000 MW capacity Tadri in Uttara Kannada

      3,000 main rural feeders to be reconductored. 

      Power bill arrears of all the Bhagya Jyothi and Kutira Jyothi households pending as on 31st March 2006 to be waived. 

      Line minimum charges for farmers exempted subject to them metering their pump sets. 

      25 % power subsidy to Panchayats which pay their bills with in due date.

      Rs 1,800 crores of Subsidy towards consumption by agricultural pump sets.





      Wholesale license to be abolished

      Excise duty to be restructured.

      Benefit of kara samadhana to be extended.




      Tax rates in respect of multiaxled and articulated vehicles to be reduced.

      Benefit of payment of annual tax on personalized vehicles of employees of PSUs including nationalized banks to be extended.








      Stamp duty to be reduced by 0.5% as a part of reforms.

      Guidelines values to be revised.



      Tax exemption on Paddy, Rice, Wheat, Pulses, Flour and Soji of Rice and Wheat, and Maida of wheat for a further period of six months.

      Tax exemption on Animal shoes, certain parts of animal driven carts and chunni of pulses.

      Reduction of tax to 4% from 12.5% on poha of maize, spent and cut dry chillies, and dry chilly seeds, handmade soap, surgical gloves, all compact disks, cold tar, certain test and measuring equipments and certain Canteen Store goods.

      Additions to the list of industrial inputs and capital goods.

      Revision of list of I.T. products to be revised.

      Monthly Input tax rebate on capital goods instead of annual rebate.

      Extension of composition facility to bakeries and all stone crushing units.

      Permission to works contractors to procure goods from outside the State.

      Deduction to main contractors on sub-contractors turnovers.

      Refunds directly to dealers bank accounts.

      Abolition of two internal checkposts.  

      Inclusion of works contracts schedule.

      Inclusion of naptha in input tax restricted goods list.

      Revision of Penalties. 




      Resale tax exemption to ONGC.

      Deemed acceptance of returns in pending cases.




      Tax exemption to beedi leaves, rubber tyres and tubes and crude used in exported goods.




      More goods to be brought under tax.




      Tax exemption to all growers excluding firms and companies.

      Tax reduction for firms to 30% and companies to 35%.




      Tax exemption on magic shows and sports.

      Reduction of compounding fee.

      Tax on Multi System Operators and exemption to cable operators.

      Retrospective tax exemption to Multi System Operators.

      Uniform exemption limit on admission to non-cinema entertainments.




      Tax deduction in the case of insurance agents and pigmy agents. 

      Tax on owners of transport vehicles instead of permit holders.