Key Features of Kanataka State Budget 2016

Chief Minister Siddaramaiah on Friday the 18th March 2016 presented Karnataka Budget 2016-17 in which major focus have been laid on water resources and agriculture sectors.
Following are the key features of Karnataka Budget 2016-17 presented by CM Siddaramaiah in state assembly:-

1. A budgetary allocation of Rs 4344 Crore has been made for Agricultural department and Agri-clinic would setup in collaboration with IIM-B and GKVK agricultural university through PPP model.
2. Rs 14,477 crores has been sanctioned for development of water resources, Rs 4034 Crore for Agriculture sector, Rs 1886 for Animal Husbandry and Rs 753 Crore for Horticulture sector.
3. “Suvarna Krishi Grama Yojana” introduced for welfare of agricultural sector and the state government has predicted a depreciation of 4.7 percent in agricultural sector due to poor monsoon.
4. Rs 100 crore has been allocated for lake development in Bengaluru and Rs 250 crore has been sanctioned for development of municipalities under Bruhat Bengaluru Mahanagara Palike (BBMP).
5. Two reaches of Namma Metro Phase-II to be completed by 2020.
6. A special package of Rs 5,000 crore announced for Bengaluru.
7. Liquor, movies, DTH services and soft drinks to cost more while paper, LED bulbs and electric cars to be cheaper.
8. Rail based mass transit system to be introduced in Bengaluru for traffic decongestion.
9. State government to abolish agriculture income tax. (To be updated)
Other key features of Karnataka Budget 2016-17:
• Budget size (Consolidated fund) – Rs.163419 crores. It is 14.65% more than the Budget Estimate of Rs. 142534 crore estimated for B.E. 2015-16.

• State Plan Size is at Rs. 85375 crores. It is more than the Budget Estimate of Rs. 72597 crores estimate for B.E. 2015-16. Increase is 17.6%.
• Total receipts – Rs. 161956 crores of which Rs. 130758 crores is Revenue Receipts while Rs. 31123 crores is Loan and Capital Receipts is Rs. 75 crores.
• Total Expenditure – Rs. 163419 crores out of which Revenue Expenditure is Rs. 130236 crore and Capital Expenditure Rs. 33183 crore.
• Constitution of “Karnataka State Agricultural and Farmers Welfare Committee” under the Chairmanship of Chief Minister for redressal of grievances and to achieve increased co-ordination at district, taluk and hobli levels.
• Identification of Special Agricultural Zones for emphasis on farmers and farm techniques.
50 Budget Highlights 2016-17

• Development of 100 model agricultural villages under the “Suvarna Krishi Grama” programme.
• “Pulse Mission” to be initiated for increasing the production of pulses during 2016 as part of International Year of Pulses.
• Coverage of 1 lakh farmers under R.K.V.Y, Krishi Bhagya and “Chief Ministers Sookshma Neeravari Yojane” for providing 90% subsidy for Drip Irrigation and Sprinkler units – Rs.300 cr.
• Organizing short term training programs to farmers through Agricultural Universities. Dissemination of innovations of progressive farmers as per the recommendations of Vision Group constituted under the Chairmanship of Dr. M. S. Swaminanthan – Rs.15 cr.
• Emphasis on saline water management and anti-saline crop farming.
• Strengthening agricultural extension services under Digital Agriculture. Development of a new extension system under PPP in association with IIM, Bangalore for agricultural universities and agri-clinics.
• Weather forecast and agricultural related suggestions to about 12 lakh farmers covered by 740 Raitha Samparka Kendras – Rs.3 crores.
• Guidance to the farmers for comprehensive management of pests using IT platform – Rs.5 crore.
• Development of 14 Regional Federations established to strengthen the Savayava Bhagya scheme – Rs.10 crore.
• Implementation of Karnataka Raitha Suraksha Pradhan Mantri Fasal Bima Yojana from 2016-17 – Rs.675.38 crores.
•• Providing incentive for promoting the establishment of agro processing units under Agri Business and Food Processing Policy 2015 – Rs.25 crores.
• A financial assistance for implementation of ‘Agri start-ups’ – Rs.10 crores.
• Open opportunity for private agricultural universities and agricultural colleges engaged in agriculture and agricultural related education and research.

• Horticultural area and productivity proposed to be increased.
• Establishment of Centre of Excellence, strengthening FPOs by providing working capital and risk management support under PPP-IHD initiative.
• Implementation of new scheme to encourage SC/ST farmers in getting the benefit of horticulture with a subsidy of 90% of the unit cost corresponding to crop intervals, installed under the drip irrigation scheme by them.
• 50% subsidy for automation of drip irrigation and fertigation to encourage precision farming.
• Formation of a framework on PPP mode for improving the quality of extension service in the horticulture sector.
• Subsidy for small and marginal farmers in the State through National Seed Corporation or FPOs for cultivating potato under rain fed conditions.
• Implementation of Comprehensive Computerization system in horticulture department.
Animal Husbandry
• Establishment of semen banks for indigenous breeds of cattle and sheep / goat – Rs.5 crore.
• Economic upliftment of widows and destitute women by providing unit of 3 sheep or 3 goats with a subsidy amount of 75% – Rs.7.5 cr for 10,000 units.
• Establishment of ultra modern vaccine production unit at Institute of Animal Health and Veterinary Biologicals, Hebbal under Jaanuvaaru Arogya Surksha Kavacha scheme – Rs.5 crores.
• Establishment of referral laboratory in Bellary for diagnosis of animal diseases.
• Implementation of “Karnataka Bovine Breeding Bill” to regulate indiscriminate breeding activities being carried out by unauthorized animal breeders.
• Taking up conservation and development programme of many valuable indigenous breeds of sheep – Rs.5 crores.
• Establishment of Cattle feed unit in Arakalagudu, Hassan district.
• Establishment of Obscure Disease Research Unit at KVAFSU, Shivamogga and Livestock Health Research and IEC center at Mulabagilu –
Rs. 2 crores.
• Establishment of Karnataka Sheep and Goat Farmers Co-operative Federation – Rs.5 crore.
• Suitable modification of cocoon production and productivity incentive to bear the production costs based on quality – Rs.20 crores.
• Establishment of cocoon banks – Rs.2 crores.
• Re-establishment of Price Stabilization Fund for the benefit of Farmers and Reelers.
• Establishment of Silk Testing Centre for certification of raw silk quality – Rs.1 crore.
• Commitment to stabilize the silk prices throughout the year and also to provide better market access to small reelers who are not capable of entering direct market. – Rs.5 crores.
• Undertaking a comprehensive study for long term development of silk industry.
• Institutional refinance mechanism to provide working capital to reelers through the Reeler cooperative societies in consultation with NABARD and Ministry of Agriculture, GOI.
• Strengthen Karnataka State Silk Research and Development Organization at Thalaghattapura.

• Establishment of “Inland Fisheries Development Centre” with an intention to undertake and implement specific local schemes in North Karnataka – Rs.2 crores.
• Construction of 3000 houses to houseless fishermen under Matsyashraya scheme.
• Taking up feasibility studies for construction of fishing harbor at Hangar katte – Kodi bengre, Udupi district and for extension of fishing harbour at Tadadi, Uttara Kannada District.
• Construction of Oceanarium at Pilikula Nisarga Dhama of Dakshina Kannada District – Rs.15 crores.
• Distribution of apron hand glove, fibre baskets and other safety equipments costing Rs.1000 each to 10,000 fisher women – Rs.1 crore.
• Disbursement of short term agricultural loans upto Rs.3 lakh at 0% rate of interest and medium term and long term agricultural loans up to Rs.10 lakh at 3% rate of interest to continue. Rs.11,000 crores of agricultural loans to be disbursed to 23 lakh farmers.
• Further extension of Yeshasvini Health Care Scheme benefit – Rs.169.11 crores.
• Computerization of the the Primary Agricultural Credit Co-operative Societies in the State in the next three years in a phased manner – Rs.5 Crores.
• Rejuvenation and strengthening the country’s first Co-operative Agriculture Society in Kanaginahala of Gadag district – Rs.1 crores.
• Loan upto Rs.10 lakhs at 3% interest for growing crops in poly houses and for installation of solar pumpsets for which capital subsidy is available from GOI. The limit prescribed for this scheme is upto Rs.25 lakhs.
• Waiver of loans amounting to Rs.473.05 lakhs along with interest, availed by Fisheries Cooperative Societies under 1st and 2nd Stage of NCDC Scheme for inland fisheries benefitting 5340 fishermen.
• Conversion of 20% of warehouse capacity of Karnataka State Warehousing Corporation across the state into cold storage with PPP and entrusting its operation and management to private partners industry, providing facilities to enable farmers to get remunerative prices for their produce.
• Installation of solar panels on the roof top of warehouse godowns of KSWC for generation of solar energy with private investment.
• Unified Market System that connected agricultural markets on an electronic platform will be extended to other markets in a phased manner.
• Modernization of sheep and goat markets in 25 major agricultural produce markets to enable “live weight based sale” – Rs.5 crores.
• Establishment of silos in 4 markets for storage of agricultural commodities and silos in 5 markets on PPP basis with viability gap funding – Rs.5 crore.
• Providing modern equipments to vegetable markets – Rs.2 crores.
• Providing pure drinking water facility in 25 rural sub market yards under Grameena Ganga Yojana and establishment of Kiosks to disseminate information in the markets using market funds – Rs.2.5 crores and Rs.1 crores respectively.
• Introduction of zero waste market scheme, Sunday market scheme and establishment of cold storage and irradiation units under RKVY Scheme – Rs.5 crores, Rs.2.5 crores and Rs.16 crores respectively.
• Prominent measure towards women empowerment by increasing women representation in the APMCs from 1 to 3.
Water Resources Major and Medium Irrigation

• The following Major Irrigation works at an estimated cost of Rs.3,000 crore to be taken up during 2016-17:-
• Modernization of Kolachi Right Bank Canals
• Modernization of Marehalli Tank Canals
• Development of Harangi Right Bank Canal 58 Budget Highlights 2016-17
• Development of Taraka Right Bank Canal
• Modernization of Hebballa Chennaiah Main Canal
• Modernisation of Distributory Canal No.35 of Hemavathy Right Bank canal
• Improvements of distributaries of Kabini Right bank canal
• Modernization of Shimsha Right Bank Canal
• Modernization of High Level Canal of Nugu
• Modernization of Left Bank Canal of Taraka
• Comprehensive Poorigali Drip/Sprinkler irrigation project
• 16 tanks in Indi taluk of Vijayapura district will be filled by Sanka and Buyyar Projects
• Construction of Kudalasangama Adavihala bridge
• Jattur bridge cum barrage work across Kagina river in Sedam taluk of Kalburagi District
• Nandavadagi Lift irrigation Scheme
• Implementation of Venkateshwara Lift Irrigation Scheme.
• Implementation of Veerabhadreshwara Lift Irrigation Scheme.
• Modernization of Bennetora Project.
• Completion of Karanja and Chulki Projects.
• Modernization Malaprabha Canal works at an estimated cost of Rs.962 crore.
• Constitution of Coordination Committee for the early and effective implementation of Ettinahole Integrated Drinking
Water Project.

• A separate Corporation for Ettinahole and Upper Bhadra projects.
• Formation of Experts’ Committee to study and report on the availability of water from other alternate sources along with Ettinahole project to provide permanent irrigation facility to drought prone areas of Chikkaballapur and Kolar districts.
Minor Irrigation

• Continuation of repair works of feeder canals/ Raja Kaluve through Tank Development Authority for removal of encroachment from lakes.
• Filling up of tanks in Kolar District through lift irrigation after treating sewage water flowing in Koramangala – Challaghatta valley – Rs.1280 crore.
• Filling up of selected tanks through LIS in Chikkaballapur and Bangalore Rural districts by treated sewage water flowing through Hebbala valley.
• Filling up of about 60 tanks of Anekal taluk, Bangalore Urban District, by treated water of Bangalore city flowing to South Pinakini through LIS near Muthasandra village.
Forest, Environment and Ecology

• Planting of 5.50 crore saplings and distribution of 2.50 crore saplings.
• Reestablishment of Elephant Corridors by purchasing private lands within forest area – Rs.20 crore.
• Rs.5 crore will be provided for LPG connections to general category families residing in sensitive forest areas of Western Ghats and Wildlife Reserve Forests in Chamaraja Nagar and Uttara Kannada Districts initially.
• Establishment of “Sri D. Devaraj Urs Bidiruvana” in 150 acres of forest area near Hunsur, under Tree Park Scheme.
• Assistance to develop Bear Sanctuary in Thimmalapura forest in Madhugiri Taluk of Tumkur district.
Primary and Secondary Education
• ‘Nali Kali’, the activity based learning system will be re-organized and implemented comprehensively.
• Activity based learning for mathematics will be expanded to Class 4 and 5.
• Supplementary teaching will be arranged during vacations for students with poor learning achievements in Government schools.
• Launching of ‘IT@Schools in Karnataka’, a comprehensive e-content driven programme.
• Streamlining of following programmes with transparent norms, made online and brought under Sakala:-
• Registration of schools and colleges.
• Renewal of recognition of schools and colleges for minimum five years.
• Permission for adopting CBSE and ICSE syllabus.
• Recognition or No Objection Certificate for status of minority educational institution.
• Process of reimbursement of expenditure to private schools admitting students under the Right to Education Act.
• System for disclosure of details of teaching and infrastructure resources in all private schools and colleges on a public website.
• Aadhaar enrollment of all students in all schools and colleges including private.
• A three year action plan to bring secondary and pre-university education under single administration.
• Enhancement of monthly honorarium of cooks by Rs.300/- under the Midday Meals scheme.
• Encouragement for Yoga education in all Government schools.
Higher Education

• Introduction of ‘Progressive Karnataka Education Policy’.
• Extension of Jnana Sangama scheme to all the institutions.
• Establishment of ‘Center for Excellence’ in VTU, Bangalore University and Tumkur University – Rs. 10 crore.
• Establishment of Karnataka Heritage Centre in Karnataka Folklore University – Rs.2 crore.
• Establishment of Government Engineering College in Bidar.
• Establishment of M.M. Kalburgi Research Centre at Karnataka University Dharwad and Institute an award in his name – Rs. 2 crore .
Health and Family Welfare
• Implementation of “Indira Suraksha” Scheme to help the families of farmers who commit suicide.
• Providing hygienic toilets and drinking water facilities in District hospitals and Mother and Child hospitals and “Dormitories” under “Aaraike” scheme.
• The following programmes will be taken up with the assistance of National Health Mission:
• Under Aapathbandhava scheme, setting up of Trauma care centers at 5 places to give emergency treatment to highway accident victims – Rs. 52.96 crore.
• Under “Dialysis Program”, setting up of 25 bed special Dialysis unit in K.C. General Hospital, Bengaluru – Rs. 4.49 Crore.
• Providing of mosquito net and mosquito repellent cream to all pregnant women under “Samagra Mathru Arogya Palana Scheme”.
• Extension of “Mobile Health and Mobike Clinic Services” to the villages which have no hospital and transport facilities.
• Setting up of free Diagnostic Center in Government Hospitals under ‘Free Laboratory Services’.
• Providing free testing and treatment to the students of Government and aided nursery, balavadi and anganavadi schools under ‘Abhaya’ scheme.
• Contruction of District Ayush Integrated Hospitals with 50 bed capacity each, in Chikkaballapura, Davangere and with 10 bed
capacity each, in Dandeli, Chincholi and T. Narsipur – Rs.6 crore.
• One time grant of Rs.3 crore for the Naturopathy Institute run by R.M.S. Medical Sciences, Hulikote.
• Construction of ladies hostel at Government Pharmacy College, Bengaluru – Rs.8 Crore.
• Establishment of District Hospital in Mysore City – Rs.60 crore.
• Constitution of Organ Donation Facilitation Cell under Jeeva Sarthakathe Scheme.
Medical Education

• Opening of new Medical Colleges at Karwar, Chamarajanagar and Madikeri.
• Upgradation of Kalburgi Peripheral Cancer Centre – Rs.50 crore.
• Upgradation of basic infrastructure at Rajiv Gandhi Super Speciality Hospital (OPEC), Raichur – Rs.35 crore.
• Establishment of a new Medical college in Bowring and Lady Curzon hospital Campus, Bengaluru with 150 seats.
• Upgradation of DIMHANS under National Mental Health Programme – Rs.46.35 crore with State Government’s share of 40%.
• Construction of campus of Rajiv Gandhi University of Health Sciences at Archakara Halli, Ramanagara.
• Construction of Gastro Enterology Institute in the premises of SDSTB Centre in Bengaluru – Rs.10 crore.
• Establishment of Women and Children Hospital at Kalburgi.
Woman and Child Development and Empowerment of Differently abled and Senior Citizens

• 2 gms of Spirulina per day for a period of 180 days to 25,000 children under Bala Poshaka Scheme – Rs.3.6 crore.
• Providing micronutrients to pregnant and lactating women in backward taluks under Mathru Pushtivardhini Scheme – Rs.42 crore.
• Providing milk with cream to Anganawadi children under Ksheera Bhagya Scheme – Rs.42.50 crore.
• Construction of 4,000 Anganawadi buildings.
• Conversion of 10,000 Anganawadi kendras as child friendly centres under Balasnehi Kendras Scheme – Rs.10,000 per centre.
• Enhancement of amount being paid to improve the nutrition level of severely malnourished children from Rs.750 to Rs.2,000 -Rs.3.12 crore.
• Registration of District Sthree Shakthi Groups under Karnataka Cooperative Societies Act, 1960 under Sthree Shakthi Samrudhi Yojane – Rs.30 lakhs.
• Enhancement of the amount being paid to children in destitute children kuteera from Rs.400 to Rs.1,000.
• Launching of Women Empowerment Policy.
• A State level resource cell will be setup for senior citizens.
• Providing training to educated specially/ differently abled persons for IAS/KAS exams under “Spardha Chetana” scheme – Rs.1 crore.
• Organization of “Arivina Sinchana” programme to create awareness among the guardians of disabled persons – Rs.1.50 crore.
• Rs.4 crore will be provided for the establishment of “Anupalana Gruhas” for care and protection of mentally challenged male and female destitutes.
• Enhancement of an amount of Rs.15,000/- to differently abled persons under “Sadhana Salakarana Yojane” and providing of motor driven two wheelers to additional 2000 severely disabled persons.
• Repair and construction of special school buildings of differently abled persons under Central Government’s “Swavalambhana
Chhatravas” scheme – Rs.10 crore.
• A grant of Rs.10 crore for 10,000 women running small road side business under “Samruddhi” Scheme.
• Launching of “Sthree Shakthi Skill” Program – Rs.2.50 crore.
• Rs.5 crore will be provided under “Dhanshree” scheme, to give loan of Rs.40,000 and subsidy of Rs.10,000 to each beneficiary of HIV affected victims.
Social Welfare


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