Siddu nudges departments to start early Budget preparations

Maqsood Maniyar | NT

Bengaluru: With an eye on the fulfillment of the guarantees for the next fiscal year and other expenses mounting, Chief Minister and Finance Minister Siddaramaiah has issued directions to all the departments to prepare estimates of revenue receipts.

The move constitutes an early preparation for next year’s state Budget. The guarantees are estimated to cost the State government Rs 52,000 crores in its second year.

The five guarantees include Gruha Jyoti Yojane which promises under 200 units of electricity to every household, Gruha Lakshmi Yojane under which Rs 2,000 is wired every month to “women head of households” and revival of the Anna Bhagya scheme that gives away 10 kgs of rice monthly to Below Poverty Line (BPL) card holders.

However, lack of availability has forced the State government to compensate for the five kgs that is supposed to come from their end with cash. BPL card holders already get five kgs of free rice under the National Food Security Act (NFSA) from the Centre.

The other two guarantees are free government bus travel for women under the Shakti scheme and Yuva Nidhi Yojana, which promises Rs 3,000 monthly allowance for unemployed graduates and Rs 1,500 for diploma holders belonging to the 2022-23 academic year.

The latter is the only guarantee that hasn’t been implemented and is slated for either December or January.

Expenses outside of guarantees piling up

Apart from the guarantees, pending dues of civil contractors and drought relief are expected to put an additional burden of Rs 20,000 crores on the state exchequer.

These expenses require robust contribution from various departments vis a vis tax collections. However, high ranking officials and economists are optimistic since tax revenue in the state keeps growing at 15 per cent.

The Gross State Domestic Product (GSDP) also shows impressive yearly growth. Moreover, the state has borrowed less than Rs 900 crore in the first eight months of the year.

Apart from the economic challenges, Siddaramaiah also faces hurdles of a political nature as several Congress MLAs have alleged that funds aren’t making their way to them in a timely manner.

They also claim that the money is insufficient due to a fund crunch brought on by the guarantees. The CM is also wary of the fact that the Lok Sabha elections are due in mid2024.

The State government is of the opinion that there is not much scope for antiincumbency since it would be just a year since they took power when the general elections get underway.

Moreover, there is a feeling that the anti-incumbency factor is also overstated since competent delivery of services may win over new voters.