Petrol and diesel in Karnataka will cost more from April 1, as the state budget for fiscal 2020-21 has proposed 3 per cent increase in VAT on both the most consumed fuels, Chief Minister BS Yediyurappa said on Thursday, March 5.
"Petrol price will increase by Rs 1.60 per litre and diesel by Rs 1.59 a litre from April 1, as I propose to increase 3 per cent value added tax (VAT) on both the fuels," Yediyurappa said while presenting the state budget for the ensuing fiscal in the state legislative assembly at Vidhana Soudha.
The budget proposes to increase VAT on petrol to 35 per cent from 32 per cent and on diesel to 24 per cent from 21 per cent. "Even after this increase, the price of petrol and diesel in Karnataka is less in comparison to those prevailing in the neighbouring states," Yediyurappa, who also holds the finance portfolio, told the lawmakers in Kannada.
'We've never faced a financial crisis before as we are doing now'
During the budget session, CM Yediyurappa said, "We have never faced such a financial crisis in our state before as we are doing now."
"Door-to-door delivery of fertilisers will be made available for farmers. They will be educated about the various fertilisers and how to use them. Rs 200 crore aid for organic farming. New policy for fertilizer and seeds."
"Rs 9,000 crore allocated for farmers' welfare. Rs10,000 annual aid for small farmers. Kisan credit card for farmers and fishermen."
Key takeaways from Karnataka budget session 2020-21:
- Major irrigation projects with the Centre notifying the Mahadayi inter-state water tribunal award on February 27 following the Supreme Court's directive on February 20.
- Allotment of ₹500 crore for Kalasa Banduri Project to supply drinking water to the four-drought prone districts in the state's north-west region.
- Revision of Anna Bhagya scheme – which provides free 7 kg rice to every member of a below poverty line (BPL) household.
- CM Yediyurappa said the horticulture sector will be considered as an industry.
- ₹ 27,000 crore elevated corridor project in Bengaluru.
- ₹ 1,000 crore to develop 110 villages under the BBMP limits.
- ₹ 2600 crore for Pradhan Mantri Kisan Samman Yojana
- ₹ 900 crore to implement Fasal Bima Yojana
- ₹ 2 Crore for Mahila Meenugarike Sabalikarana Yojana
