Veteran Congress leader and former Minister R.V. Deshpande on Monday termed the ₹2,37,893-crore State Budget presented by Chief Minister B.S. Yediyurappa “unrealistic”.
Participating in a debate on the Budget in the Assembly, Mr. Deshpande maintained that the Chief Minister, who also holds the Finance portfolio, was unlikely to be successful in mobilising such resources considering the adverse financial condition marked by global recession and the reduction in the State’s share of Central funds.
“The State has already lost out on Central funds to the extent of ₹11,887 crore, both in terms of loss of compensation towards GST and allocation by the 15th Finance Commission. I do not know how the Chief Minister will mobilise resources to take the budget size to such a huge level,” he said.
Pointing out that the economic slowdown had seriously impacted the economy, he predicted that the State was bound to see a shortfall in collection of its own tax revenue such as motor vehicle taxes, stamp paper duty and excise.
Mr. Deshpande also said the future was bleak as the 15th Finance Commission had reduced the State’s share of Central taxes. “In this context, what matters is not the size of the Budget, but its practicality. The Budget should be workable,” he maintained, urging the Chief Minister to come out with details of its implementation.
Expressing concern over the impact of the economic slowdown on small-scale industries and businesses, he urged the government to hold a meeting with nationalised banks as part of efforts to convince them to reschedule their loans from the short term to medium/long term.
