Karnataka: CM Siddaramaiah taps booze, property markets to fund poll pledges
Karnataka chief minister Siddaramaiah on Friday proposed to increase taxes on alcohol and raise the guidance value of properties to fund the Congress party's election promises that have bloated the expenditure bill by about Rs 58,200 crore. The excise duty has been proposed to be increased by 20% on Indian-made liquor.
On beer, the additional excise duty will be raised to 185% from 175%. «Even after the increase in excise rates, the price of liquor in our state would be lower when compared to the neighbouring states,» the chief minister said, presenting the fiscal 2023-24 budget of the new Congress government Buyers of vehicles which fall under «certain categories» will have to shell out more in taxes, the details of which weren't announced Friday.
Siddaramaiah also plans to squeeze higher revenue from the mining sector. With a bullish run in GST collections and in the property market in Bengaluru, and planned gross borrowings of Rs 85,818 crore, Siddaramaiah hopes to increase spending.
The state's revenue expenditure this fiscal year is expected to outstrip revenue receipts by about Rs 12,000 crore. The CM renewed his party's commitment to implement the five guarantees, which he said will touch about 13 million families.
«This means we will be providing on an average additional financial assistance of Rs 4,000 to Rs 5,000 monthly to each household, which is about Rs 48,000 to Rs 60,000 every year.» Since there is a need for additional resources to fulfil all the guarantees and to undertake the developmental programmes, tax departments are being entrusted with higher targets, the CM told the media at a post-budget briefing. The CM has sought to calm people who were worried about the higher spending on the promises,
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