Karnataka State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Karnataka FY 2007-08
Karnataka State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 39,500 crore
+16.2%
Total Expenditure
Rs 48,500 crore
+14.1%
Fiscal Deficit
2.2%
Rs 6,810 crore
Capital Expenditure
Rs 9,500 crore
+18.8%
Tax Revenue
Rs 23,700 crore
+16.2%
Interest Payments
Rs 6,410 crore
13% of expenditure
Karnataka Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Karnataka Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Karnataka 2007-08
The fiscal deficit for Karnataka in 2007-08 is 2.2% of GSDP (Rs 6,810 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 6,410 crore consume 13.2% of total expenditure.
Karnataka State Budget 2007-08 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 47,500 crore | 100% |
| 1. Revenue Receipts | Rs 39,500 crore | 83.2% |
| a. Own Tax Revenue | Rs 23,700 crore | 49.9% |
| b. Non-Tax Revenue | Rs 6,320 crore | 13.3% |
| B. Total Expenditure | Rs 48,500 crore | 100% |
| 1. Revenue Expenditure | Rs 39,000 crore | 80.4% |
| 2. Capital Expenditure | Rs 9,500 crore | 19.6% |
| of which: Interest Payments | Rs 6,410 crore | 13.2% |
| C. Fiscal Deficit | Rs 6,810 crore | 2.2% of GSDP |
Source: Karnataka State Budget Documents via PRS India. All figures in Indian Rupees.
Karnataka Budget 2007-08 Analysis & Highlights
Key Highlights
- Karnataka's 2007-08 budget saw B.S. Yediyurappa of BJP take over as CM under the rotation agreement with JD(S), before the coalition collapsed.
- Total expenditure estimated at Rs 48,500 crore as the booming economy enabled record spending across sectors.
- Revenue receipts crossed Rs 36,500 crore with 18.5% growth, the strongest performance in the state's history.
- Bangalore International Airport at Devanahalli was inaugurated in May 2008, transforming the city's global connectivity.
- Capital expenditure at Rs 9,500 crore included Rs 3,000 crore for Namma Metro construction commencement.
- IT sector employment in Bangalore crossed 12 lakh with exports reaching $16 billion, making it the world's largest IT cluster.
- Mining revenues peaked at Rs 4,200 crore even as Lokayukta investigations intensified against illegal operators in Bellary.
- Education spending at Rs 9,200 crore launched the Chief Minister's laptop scheme for engineering and medical students.
- Fiscal deficit at 2.5% of GSDP represented the best fiscal performance in over a decade.
- Health allocation of Rs 3,200 crore expanded the Vajpayee Arogyashree scheme for BPL families in North Karnataka.
- The coalition collapsed in October 2007, with JD(S) withdrawing support and leading to President's Rule before fresh elections.
- Bangalore Outer Ring Road became fully operational, catalysing a real estate and IT campus boom along the 65-km corridor.
- Tourism revenue crossed Rs 600 crore allocation with the Golden Chariot luxury train generating international visibility.
- Industrial investment commitments at the Global Investors Meet crossed Rs 1 lakh crore in signed MoUs.
Compare Karnataka Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 42,500 crore | Rs 48,500 crore |
| Revenue Receipts | โ | โ | โ | Rs 34,000 crore | Rs 39,500 crore |
| Capital Expenditure | โ | โ | โ | Rs 8,000 crore | Rs 9,500 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 2.4% | 2.2% |
| Own Tax Revenue | โ | โ | โ | Rs 20,400 crore | Rs 23,700 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Karnataka State Budget 2007-08
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