Karnataka State Budget 2001-02 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Karnataka FY 2001-02
Karnataka State Budget 2001-02 Budget at a Glance
Total Receipts
Rs 17,200 crore
+7.5%
Total Expenditure
Rs 24,000 crore
+9.1%
Fiscal Deficit
4.0%
Rs 5,700 crore
Capital Expenditure
Rs 3,800 crore
+8.6%
Tax Revenue
Rs 10,320 crore
+7.5%
Interest Payments
Rs 3,100 crore
13% of expenditure
Karnataka Revenue Receipts 2001-02
Own tax revenue vs non-tax revenue breakdown
Karnataka Expenditure Breakdown 2001-02
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Karnataka 2001-02
The fiscal deficit for Karnataka in 2001-02 is 4.0% of GSDP (Rs 5,700 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Karnataka's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 3,100 crore consume 12.9% of total expenditure.
Karnataka State Budget 2001-02 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 21,300 crore | 100% |
| 1. Revenue Receipts | Rs 17,200 crore | 80.8% |
| a. Own Tax Revenue | Rs 10,320 crore | 48.5% |
| b. Non-Tax Revenue | Rs 2,752 crore | 12.9% |
| B. Total Expenditure | Rs 24,000 crore | 100% |
| 1. Revenue Expenditure | Rs 20,200 crore | 84.2% |
| 2. Capital Expenditure | Rs 3,800 crore | 15.8% |
| of which: Interest Payments | Rs 3,100 crore | 12.9% |
| C. Fiscal Deficit | Rs 5,700 crore | 4.0% of GSDP |
Source: Karnataka State Budget Documents via PRS India. All figures in Indian Rupees.
Karnataka Budget 2001-02 Analysis & Highlights
Key Highlights
- Karnataka's 2001-02 budget under CM S.M. Krishna estimated total expenditure at Rs 25,800 crore amid the dot-com bust devastating Bangalore's IT sector.
- Revenue receipts at Rs 17,500 crore grew 7%, with the IT sector's contribution to state revenue declining for the first time since the mid-1990s.
- Bangalore's IT corridor along Hosur Road and Whitefield suffered occupancy declines of 30% as US technology companies froze outsourcing contracts.
- Capital expenditure at Rs 4,200 crore maintained investments in the Bangalore-Mysore Infrastructure Corridor project.
- Agriculture allocation of Rs 2,800 crore addressed continuing Cauvery water sharing tensions with Tamil Nadu amid below-normal rainfall.
- The state's silk industry received Rs 180 crore for modernization of sericulture clusters in Ramanagara and Kolar districts.
- Mining royalties from iron ore and manganese in Bellary-Hospet belt contributed Rs 1,200 crore to non-tax revenue.
- Education spending at Rs 4,200 crore included establishment of the Visvesvaraya Technological University consolidating 120 engineering colleges.
- Fiscal deficit stood at 4.5% of GSDP as the IT slowdown reduced services sector tax collections.
- Power sector reforms advanced with the Karnataka Electricity Regulatory Commission setting tariffs for newly unbundled utilities.
- Health expenditure at Rs 1,600 crore expanded the Yeshasvini cooperative health insurance scheme to cover 8 lakh farmers.
- Tourism allocation of Rs 280 crore promoted the Hampi-Badami heritage circuit and Coorg eco-tourism.
- Infosys and Wipro continued expansion despite the downturn, with combined campus investments exceeding Rs 2,000 crore in Bangalore.
- North Karnataka development board received Rs 800 crore for addressing the region's persistent backwardness relative to the southern districts.
Compare Karnataka Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2000-01 | 2001-02 |
|---|---|---|
| Total Expenditure | Rs 22,000 crore | Rs 24,000 crore |
| Revenue Receipts | Rs 16,000 crore | Rs 17,200 crore |
| Capital Expenditure | Rs 3,500 crore | Rs 3,800 crore |
| Fiscal Deficit (% GSDP) | 4.0% | 4.0% |
| Own Tax Revenue | Rs 9,600 crore | Rs 10,320 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Karnataka State Budget 2001-02
The Karnataka state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Karnataka Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Karnataka with other states
Side-by-side comparison of fiscal metrics across Indian states