Karnataka budget: Another opportunity lost

The state fiscally is in a very strong condition with revenue surplus, good gross state domestic product, low debt and good fiscal management.

But what the budget lacks is a grand vision and a direction. Chief minister DV Sadananda Gowda has stated that growth is the only solution to solve problems of poverty but the budget does not provide any impetus to growth.

Political instability after last five years is taking its toll on the state, leading to lower growth rates, despite a strong position. For fiscal 2013, there is a revenue surplus; the plan size has increased, and Rs 4500 crore of additional salaries is absorbed but there is no initiative to increase growth.

The budget has enhanced spendings on pensions for old age and increased health insurance coverage but not shown initiative to invest in higher education. The future of the state is being compromised due to lack of vision. Tax concession has been given to the extent of Rs150 crore, but compared to tax collected this year—Rs33,000 crore— it is too small to make any impact.
Overall, one more pedestrian budget, and one more opportunity lost to increase growth.