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The overall allocation to the sector was about Rs 46,850 crore, about a quarter of the state budget, according to the economic advisor to the chief minister, S Subramanya. This should provide relief to a sector ravaged both by drought and low prices. Kumaraswamy announced significant grants to growers of minor millets and paddy, minimum support prices for 12 crops, and a loan facility at 3% interest on the mortgage of ornaments by small and tiny farmers. He did all of that by maintaining the state’s good record of fiscal prudence – the deficit at 2.7% of GDP was well within the accepted norm of 3%.Agriculture and associated activities saw a sharp 36% increase in capital expenditure and a 21% increase in revenue expenditure, the latter perhaps reflecting the loan waiver. BENGALURU: A re-estimation of the farm loan waiver bill that dramatically reduced the anticipated burden by almost Rs 20,000 crore allowed chief minister HD Kumaraswamy to present a budget that significantly expanded funding for rural and urban development projects.Given the crucial upcoming general elections, he sprinkled goodies on almost every section of the population and did not burden anyone other than beer drinkers, who will now have to pay an extra Rs 15 on a 650ml bottle.
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