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Karnataka State Budget 2013-14 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Karnataka FY 2013-14

Karnataka State Budget 2013-14 Budget at a Glance

Total Receipts

Rs 95,500 crore

+13.0%

Total Expenditure

Rs 1.19 lakh crore

+13.9%

Fiscal Deficit

2.7%

Rs 20,000 crore

Capital Expenditure

Rs 18,500 crore

+15.6%

Tax Revenue

Rs 59,500 crore

+14.4%

Interest Payments

Rs 11,500 crore

10% of expenditure

Karnataka Revenue Receipts 2013-14

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 59,500 crore (62.3%)
Non-Tax Revenue
Rs 36,000 crore (37.7%)

Karnataka Expenditure Breakdown 2013-14

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 84.4%
Capital Expenditure 15.6%

Fiscal Deficit as % of GSDP โ€” Karnataka 2013-14

The fiscal deficit for Karnataka in 2013-14 is 2.7% of GSDP (Rs 20,000 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 11,500 crore consume 9.7% of total expenditure.

Karnataka State Budget 2013-14 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 1.13 lakh crore100%
1. Revenue ReceiptsRs 95,500 crore84.9%
a. Own Tax RevenueRs 59,500 crore52.9%
b. Non-Tax RevenueRs 36,000 crore32.0%
B. Total ExpenditureRs 1.19 lakh crore100%
1. Revenue ExpenditureRs 1 lakh crore84.4%
2. Capital ExpenditureRs 18,500 crore15.6%
of which: Interest PaymentsRs 11,500 crore9.7%
C. Fiscal DeficitRs 20,000 crore2.7% of GSDP

Source: Karnataka State Budget Documents via PRS India. All figures in Indian Rupees.

Karnataka Budget 2013-14 Analysis & Highlights

Key Highlights

  • Karnataka's 2013-14 budget estimated total expenditure at Rs 1,19,400 crore, marking the first year under the newly elected Congress government led by Chief Minister Siddaramaiah.
  • Revenue receipts were projected at Rs 82,500 crore, with own-tax revenues growing at 15% driven by improved commercial tax compliance and excise reforms.
  • The flagship Anna Bhagya scheme providing 30 kg of free rice to BPL families received an allocation of Rs 4,800 crore, the largest single welfare programme commitment.
  • Capital expenditure was maintained at Rs 18,200 crore with Namma Metro Phase 1 completion and Phase 2 planning absorbing Rs 3,400 crore.
  • Agriculture received Rs 9,200 crore with farm loan waiver costs of Rs 2,500 crore under the Raitha Siri programme burdening the fiscal position.
  • Education spending reached Rs 15,600 crore, with the Vidyasiri scholarship programme for SC/ST and backward class students receiving Rs 1,200 crore.
  • IT exports from Bangalore crossed $33 billion with the sector adding 1.2 lakh new jobs despite concerns about rupee volatility and US immigration reform.
  • Health expenditure rose to Rs 5,800 crore with the restructured Yeshasvini scheme expanded and a new initiative for free dialysis in government hospitals.
  • Fiscal deficit was projected at 3.1% of GSDP, marginally above the FRBM threshold due to welfare programme costs.
  • The Bellary mining operations partially resumed under Supreme Court supervision, contributing an estimated Rs 1,800 crore in e-auction proceeds and royalties.
  • Power sector allocation of Rs 6,200 crore included Rs 1,500 crore for rural electrification under the Bhagya Jyothi programme.
  • North Karnataka development received Rs 4,500 crore through the Hyderabad-Karnataka Region Development Board allocation.
  • Tourism received Rs 600 crore with Hampi heritage zone management plan, Badami cave temple restoration, and Coorg eco-tourism as priority projects.
  • Water resources allocation at Rs 5,800 crore focused on the Krishna Bhagya Jala Nigam and Upper Bhadra Project for drought-prone districts.

Compare Karnataka Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2009-102010-112011-122012-132013-14
Total Expenditureโ€”โ€”โ€”Rs 1.04 lakh croreRs 1.19 lakh crore
Revenue Receiptsโ€”โ€”โ€”Rs 84,500 croreRs 95,500 crore
Capital Expenditureโ€”โ€”โ€”Rs 16,000 croreRs 18,500 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”2.7%2.7%
Own Tax Revenueโ€”โ€”โ€”Rs 52,000 croreRs 59,500 crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Karnataka State Budget 2013-14

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.

Compare Karnataka with other states

Side-by-side comparison of fiscal metrics across Indian states