Fiscal deficit of Karnataka 2nd lowest for 2009-10: Report
Bangalore: The fiscal deficit of Karnataka was the second lowest for 2009-10 compared to certain other states, according to state budget analysis carried out by Association for Democratic Reforms (ADR) and Karnataka Election Watch (KEW).
The fiscal deficit of Karnataka for the stated period stood at 3.6 percent compared to Goa, Punjab, Uttar Pradesh Uttarakhand and Manipur.
According to budget analysis report released by these two organisations, in terms of per capita income, Karnataka ranked the third highest with Rs 48,824 per annum compared to Goa which had the highest per capita income of Rs 1,54,433. Uttar Pradesh had the lowest-- Rs 24,617.
Among the six states analysed, Goa was the least dependent on central funding to the extent of 15 per cent while Karnataka was dependent to an extent of 31 percent.
Karnataka and Goa have the lowest committed expenditure (salaries, interest payments etc), as a percentage of revenue expenditure at 48 percent as against Punjab and Uttarakhand which had the highest committed expenditure at 71 percent.
Punjab was the only state which exceeded the 15 percent limit of interest payments. The interest payments for Punjab comprised 23 percent of the revenue receipts. The interest payments for Karnataka stood at 11 percent.
Summarising the performance of Karnataka government (from 2005-2010) as against the indicators laid out by the 12th Finance Commission, as per the analysis, the key factors to be noted are; the revenue deficit during 2009-10 was 0.54 percent of GSDP (Gross State Domestic Product).Interest payments too were below the laid target of 15 percent, it said.
The two points that are significant are, while fiscal deficit as a percentage of GSDP increased to 3.6 percent in 2009-10 from two percent in 2005-2008; the revenue deficit could not attain the target of 0 percent in 2008-09 as laid out by the Financial Commission.