Relief likely for farmers in budget

By B.K. Vittal

BANGALORE, MARCH 25. The State Budget for 2001-2002 is scheduled to be presented to the Legislative Assembly at 12.30 p.m. tomorrow by the Chief Minister, Mr. S.M. Krishna, who holds the Finance portfolio. Mr. Krishna, who is set to present his second budget, in all probability will have to do a tightrope walk for more reasons than one.

The Budget will be a difficult exercise in that it will have to be harsh to mobilise huge resources required to give a fillip to various projects, especially those in the Krishna Basin and for removal of regional imbalances. At the same time, it will have to be soft on people, coming as it does, close to the elections to the local bodies.

The Chief Minister went on record at the recent AICC plenary session in the City that the focus of his Budget would be the farmer. By this, the Chief Minister has made a virtue out of necessity as the Opposition is vigorously campaigning for the cause of farmers who have been adversely affected by the crash in prices.

It remains to be seen how the Government will please farmers to score over the Opposition as already the Government has agreed to compensate the Karnataka Power Transmission Corporation Ltd. to the extent of Rs. 140 crores by exempting, for a year, the tariff increase in respect of the irrigation pump sets.

For 2000-2001, the Government, after mobilising resources to the tune of Rs. 360 crores, anticipated a revenue deficit of Rs. 290.70 crores. But it is likely to end with a figure of Rs. 883.82 crores, according to the report of the Economic Survey for the year. This has made the process of Budget-making more difficult this year.

In the last Budget, the Government proposed a 15 per cent cut in allocation for higher education. But when it came to implementation by way of 15 per cent reduction in the grants for unaided institutions, it came a cropper.

To mobilise additional resources, the Government tried to increase the fees under various heads in its colleges although it was argued that they had not been revised for decades. But the move had to be dropped following strong opposition from students.

The committee on regional imbalances recently submitted an interim report covering health, education, roads and basic facilities involving an outlay of Rs. 1,300 crores. If the Government's concern is giving a fillip to development, at least some important proposals may have to be incorporated in the Budget, however expensive they may be. It is likely that in the first instance, health and literacy may receive some consideration in the Budget.

The Commission on Taxation Reforms, under the chairmanship of Mr. M. Veerappa Moily, set up by the Government, has pointed to a revenue leak of over Rs. 1,400 crores a year in the Excise Department. It is to be seen how far the Government will go in dealing with this aspect.

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