Agro-food processing
Agro-food processing is today a huge global industry. Karnataka has competitive advantages
to build a strong agro-food industry. To give impetus to this sector, my Government will
promote “Food Karnataka Limited”, a special purpose vehicle that will build
partnerships between farmers and private sector food majors. Contract farming will then
become a gainful business opportunity for farmers.
Forest and environment
On the occasion of the centenary celebration of Kuvempu and to make his dream a reality,
Government will take action to declare an additional 9,160 acres of forest in Koppa forest
division in Chickmagalur district as part of the Kuvempu Memorial Bio Park. In addition, I
propose to dedicate Rs 1 crore for the centenary celebration. I propose to institute
an award to be called the “Rajiv Gandhi Parisara Prashasthi” for signal service
done in the preservation of Ecology and Environment. This award of Rs.1 lakh each will be
given to 5 awardees — individuals or institutions — every year to be selected
from the five regions of the State namely, Malnad, Karavali, Old Mysore (excluding
Bangalore), Hyderabad-Karnataka and Bombay-Karnataka regions.
Tourism
There is great opportunity for all sections of society to play a gainful part in tourism.
With the right education and training a large number of people can engage themselves
gainfully in the Tourism and Hospitality Industry. The effort will be to forge a
public-private partnership for tourism development. Our hills and forests are gifts of
nature and hold enormous potential for “Eco-tourism”. This will be the focus of
our effort.
Kannada and culture
In my Budget Speech of the previous year, I had proposed to celebrate the Suvarna Jayanti
of the ‘Unification of Karnataka’ on the occasion of completion of 50 years of
unification in the year 2006. Accordingly a High Level Committee has been constituted
under my Chairmanship to celebrate the Golden Jubilee in a memorable manner. Action will
be taken during the ensuing year, to construct two ‘Suvarna Cultural Complexes’
– one at Dharwad and the other at Gulbarga. In these complexes, it is proposed to
exhibit various items on Art, Literature, Sculpture, Drama, Folk, Fine Arts, Tourism,
Architecture, History, Nature and Humanities of Karnataka, so that the entire development
of these aspects would be available for the people at one place. Under the Sangeetha
Samskruthi Chetana Yojane, a National level Karnataka theatre festival will be organised
in memory of the Late B V Karanth, who brought international fame to Kannada theatre. In
honour of Jnanapith Awardee Dr. Shivaram Karanth, a trust has been established to promote
literature, yakshagana and the folk arts dear to him. I propose to provide Rs 50 lakh to
this trust.
Police
To meet the long felt requirement to increase the strength of police women in Police
Stations throughout the state, I propose to sanction 1,000 additional posts of constables,
ASIs and SIs, to be recruited in a phased manner. I also propose to strengthen the KSRP by
adding 200 women police personnel. To meet the felt need of a special forces unit in the
state police, I propose to set up a compact Commando unit comprising about 100 police
personnel of various ranks.
Fiscal performance
My Government is in the midst of a Medium Term Fiscal Reforms Programme dovetailed into
the annual budgetary exercise. This is the third year of fiscal reforms. Due to a bad
revenue year and a severe drought in 2001-02, we were unable to adhere fully to the fiscal
targets under the Medium Term Fiscal Plan.
The power sector has become a major area of fiscal concern for me. It is largely due to
the inability of the power sector to deliver on reform parameters that the Government was
unable to draw the third tranche of the Karnataka Economic Restructuring Loan of Rs.1,200
crore. Despite these constraints, the revised estimates of 2002-03 indicate that we
have been able to contain deficits within the targeted limits. The results are there for
all to see. Though revenue receipts have fallen from an estimated Rs 18,798 crore to Rs
17,101 crore expenditure has been reduced from Rs 24,840 crore to Rs 23,747 crore. The
fiscal deficit as per revised estimates has been pegged at Rs 5,637 crore as against a
target of Rs 5,839 crore. The fiscal outlook for 2003-04 is encouraging. In this
budget I have tried to realistically assess the state’s own resource mobilisation. It
has also been my effort to prune Non-Plan non-development expenditure. Rightsizing
Government expenditure, particularly by reducing expenditure on the non-plan side is the
key challenge to achieve fiscal sustainability.
This was necessary to release scarce resources from the Non-Plan side to enhance Plan
allocations for development expenditure in key sectors such as Agriculture and
Horticulture, Rural Development and welfare of the under privileged. I am confident that
all departments will operate within their budgeted allocations both on the Plan and
Non-Plan side during the ensuing year. My aim will be to restrict the fiscal deficit
well within the target of Rs 6,269 crore set by the MTFP. The success of this budget will
depend substantially on adhering to the Fiscal Responsibility Act and this will be our
collective responsibility.
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