Karnataka State Budget 2002-03 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Karnataka FY 2002-03
Karnataka State Budget 2002-03 Budget at a Glance
Total Receipts
Rs 18,500 crore
+7.6%
Total Expenditure
Rs 26,000 crore
+8.3%
Fiscal Deficit
3.5%
Rs 5,460 crore
Capital Expenditure
Rs 4,200 crore
+10.5%
Tax Revenue
Rs 11,100 crore
+7.6%
Interest Payments
Rs 3,460 crore
13% of expenditure
Karnataka Revenue Receipts 2002-03
Own tax revenue vs non-tax revenue breakdown
Karnataka Expenditure Breakdown 2002-03
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Karnataka 2002-03
The fiscal deficit for Karnataka in 2002-03 is 3.5% of GSDP (Rs 5,460 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 is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 3,460 crore consume 13.3% of total expenditure.
Karnataka State Budget 2002-03 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 23,200 crore | 100% |
| 1. Revenue Receipts | Rs 18,500 crore | 79.7% |
| a. Own Tax Revenue | Rs 11,100 crore | 47.8% |
| b. Non-Tax Revenue | Rs 2,960 crore | 12.8% |
| B. Total Expenditure | Rs 26,000 crore | 100% |
| 1. Revenue Expenditure | Rs 21,800 crore | 83.8% |
| 2. Capital Expenditure | Rs 4,200 crore | 16.2% |
| of which: Interest Payments | Rs 3,460 crore | 13.3% |
| C. Fiscal Deficit | Rs 5,460 crore | 3.5% of GSDP |
Source: Karnataka State Budget Documents via PRS India. All figures in Indian Rupees.
Karnataka Budget 2002-03 Analysis & Highlights
Key Highlights
- Karnataka's 2002-03 budget estimated total expenditure at Rs 27,200 crore as the IT sector began showing recovery signs after the dot-com trough.
- Revenue receipts grew 8% to Rs 18,900 crore with services tax collections improving as outsourcing contracts resumed.
- Bangalore's IT exports recovered to $4.5 billion as US companies resumed outsourcing engagements, validating the sector's structural competitiveness.
- Capital expenditure rose to Rs 4,500 crore with focus on Bangalore International Airport land acquisition and approach road development.
- Agriculture allocation of Rs 3,000 crore included Rs 500 crore for drought relief in North Karnataka following monsoon failure.
- The Bellary-Hospet iron ore belt contributed Rs 1,400 crore in mining royalties as Chinese steel demand boosted ore prices.
- Education spending at Rs 4,600 crore expanded the Vidyagama alternative learning programme in drought-affected districts.
- Power sector unbundling completed with BESCOM, MESCOM, HESCOM, GESCOM, and CESC established as separate distribution utilities.
- Fiscal deficit improved marginally to 4.2% of GSDP on the back of improved revenue performance.
- Health expenditure of Rs 1,700 crore expanded Yeshasvini to 17 lakh members and launched the 108 emergency ambulance service.
- Tourism received Rs 300 crore with Hampi attracting enhanced international attention following UNESCO recognition.
- The biotech sector received Rs 150 crore through the Millennium Biotech Policy, establishing Bangalore as India's biotech capital.
- Infosys revenue crossed $1 billion, making it India's first IT company to reach this milestone from its Bangalore headquarters.
- Road development of Rs 1,400 crore targeted the Bangalore Outer Ring Road and Hubli-Dharwad bypass construction.
Compare Karnataka Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2000-01 | 2001-02 | 2002-03 |
|---|---|---|---|
| Total Expenditure | â | Rs 24,000 crore | Rs 26,000 crore |
| Revenue Receipts | â | Rs 17,200 crore | Rs 18,500 crore |
| Capital Expenditure | â | Rs 3,800 crore | Rs 4,200 crore |
| Fiscal Deficit (% GSDP) | â | 4.0% | 3.5% |
| Own Tax Revenue | â | Rs 10,320 crore | Rs 11,100 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Karnataka State Budget 2002-03
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