Bengaluru: Considering the current financial position of the state, CM Siddaramaiah is unlikely to announce any populist scheme in his Budget for 2016-17 which may be presented in the third week of next month.
Sources in the finance department told DC that revenue collection from sources such as commercial taxes has not been satisfactory in the last two years due to a steady decline in international prices of crude oil. Cess on diesel and petrol was one of the major sources of income for all states. However, with the prices of petroleum products sliding every week, the commercial taxes department is learnt to be finding it difficult to meet the target set for the department during the current fiscal.
Another source of revenue was excise but that department too is sweating it out to meet the target of Rs 15,200 crore for 2015-16 owing to illegal flow of liquor from other states. More than consumption, penalty on liquor shops fetches major income for the government. After the arrack ban in the state in 2006, successive governments failed to work out alternatives to mobilize resources through this department. Besides, the cap on issuing new liquor licenses has forced the department to step up its raids on liquor shops to collect penalty.
Sources said the government launched a number of populist schemes since 2013 which were guzzling resources. For instance, the Anna Bhagya scheme launched for Below Poverty Line (BPL and Anthyodaya card holders) itself costs over Rs 3,500 crore every year. Likewise, other schemes were also bleeding the state economy. On one hand the government has been announcing new schemes, and on the other hand the inflow of funds is getting lesser. The department is thinking of cutting funds for other programmes to ensure continuation of existing schemes.
Sources said the CM will start holding pre-budget consultations from Wednesday while the budget is likely to be presented on March 18. This time, the impetus of the government may on agriculture, industry and infrastructure than populist schemes.
Many schemes announced in previous budgets are yet to take off for want of funds. The government's immediate priority is to implement such schemes instead of announcing fresh schemes that drain revenue. "Mr Siddaramaiah is aware of the financial situation. So, he may not risk announcing fresh schemes", sources added.
