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The supplementary estimates were tabled by the Law and Parliamentary Affairs Minister J C Madhuswamy on behalf of Chief Minister Basavaraj Bommai who holds the Finance portfolio.
The estimates are related to advance sanctioned form the contingency funds after the 2022-23 supplementary estimates- The first installment was placed before the legislature in September this year.
The supplementary estimates aggregating to Rs 8,001.13 crore includes Rs 1,806.18 crore of charged expenditure and voted expenditure of Rs 6,194.95 crore.
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The amount will be met through additional mobilization of own revenue receipts, increase in receipts under Devolution from Government of India, additional GST compensation, Special Capital Assistance Scheme of Government of India and if necessary, through reprioritisation of expenditure and probable savings in expenditure, the state government said.
It further said that the actual releases of the amount included in the second instalment of the supplementary estimates after approval by the state legislature would be made based on the fiscal position and in compliance with provisions of Karnataka Fiscal Responsibility Act, 2002.
The Karnataka government in its Mid Term Review of the State Finances said the state revenues after the revival of economy post COVID, has increased by 10 per cent and the Goods and Services Taxes (GST) collections has exhibited a robust growth of 30 per cent in the first half of the 2022-23 when compared previous year in the corresponding period.
The government said the state received Rs 21,480 as the Foreign Direct Investment while the Government of India has approved Rs 2,918 crore as Special Assistance to capital investment for the state.
The inflation has been brought down to 5.81 per cent in September this year from 6.39 per cent in April this year.
The state’s inflation is ”well below the 7.4 per cent inflation of the country as a whole as on September 2022,” the government said.
It further said at the time of tabling the state budget, the Karnataka government had estimated the Gross State Domestic Product (GSDP) at Rs 18,85,750 crore.
”However, the GOI projected Karnataka’s GSDP at Rs 21,81,217 crore for 2022-23. Accordingly, state has revised its GSDP for estimation of its fiscal parameters. Based on this fiscal deficit for 2022-23 is 2.82 per cent of GSDP and revenue deficit of 0.67 per cent of the GSDP,” the government said.