Karnataka budget: VAT on alcohol abolished, cinema tickets to become cheaper

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Bengaluru: During the ongoing Budget session on Wednesday, the Karnataka Chief Minister Siddaramaiah announced that the additional excise duty on the liquor will be removed.

The state government has also abolished the Value Added tax (VAT) charges on wine, beer and hard liquor.

The new rules would be applicable from April 1.

After the announcement has been made, stocks of United Brewerie, United Spirits rose up to 2.75 per cent, Radico Khaitan and Globus Spirits rose more than 4 per cent in intra-day trade on Wednesday.

The new proposal would help in improving the demand for liquor in the state.

The administrative fee of Rs 2 per litre on export and Re 1 per litre on spirit (excluding ethanol) is suggested to be removed in the Budget.

In a relief to cinema lovers of the state, the government also proposed to curb movie ticket at just Rs 200 at all theatres and multiplexes, which would otherwise go up to Rs 500.

Inspired from the Amma canteens introduced by late Tamil Nadu CM J Jayalalithaa, the Chief Minister allocated Rs 100 crore for the setting up of 198 Namma Canteens in Bengaluru.

Breakfast at these canteens would be provided for Rs 5, lunch and dinner for Rs 10.

Karnataka chief minister Siddaramaiah presents his 12th budget in Bengaluru.

Here are the highlights from his budget speech.

* 150 Electric Buses will be introduced in Bengaluru City and 50 Electric Buses in Mysuru.

* Karnataka State Road Safety Authority will be constituted, to reduce road accidents and to improve road safety.
* To fight crime against women and children, technology based police accessories and downloadable apps, will be introduced.

* Mandatory screening of Kannada and regional language films in one screen of multiplex cinemas in prime time between 1.30 pm to 7.30 pm.
* Forensic Sciences and Technology Center will be established in Bengaluru at a cost of Rs 20 crore.
* “Dial 100” system will be further strengthened and will be extended to districts.
* Separate toilet facilities will be provided for lady staff in all the police stations in the state.
* Rs 10 crore allocated for strengthening basic infrastructure for women in police training schools.
* 10,000 liters of water will be provided every month, free of cost to the residents of slums living in 30X20 sites.
* Feasibility study for Namma Metro phase 3 is complete. Suitable alignment to connect KIA is under finalisation.
* Rs 150 crore will be made available to BBMP for railway over bridge and under bridge construction to enable uninterrupted movement of vehicles.
* Grant of Rs 300 crore for development of storm water drains with in BBMP limits.
* Enhancement of financial assistance to 25,000 HIV infected and affected children, to Rs 1000.
* To overcome the shortage of specialized doctors in govt hospitals, govt medical colleges will commence DNB post graduate course.
* Opening balance: Rs -176.04cr. Total Receipts: Rs 1,44,891.54cr. Total Expenditure: Rs 1,44,755cr. Surplus: Rs 136cr.
* Integrated Ayush hospitals having 50 beds will be established in Chitradurga and Chickamagaluru District hospitals at at total cost of 6 crore.
* One ambulance service will be provided for a radius of 10 to 15 km.
* 20 bedded poly trauma centre and 10 bedded ICU, with ventilator proposed at Sanjay Gandhi Accident Trauma and Rehabilitation Centre in Bengaluru.
* Mortuaries will be constructed in 150 community health centers.

* Wenlok hospital, Mangaluru will be upgraded at a cost of Rs 10 crore.
* Dialysis centres to be established in 114 talukas. Blood Transfusion Units to be set up in 10 district hospitals.
* Five super specialty hospitals proposed in Davanagere, Ramanagara, Tumakuru, Vijayapura and Kolar for cancer and heart disease treatment.
* Approval granted for Bengaluru Dr BR Ambedkar School of Economics (BASE) on the lines of London School of Economics.
* Shoes, socks, chudidhars for girl students from class 8 to 10, spectacles and story books with social message proposed for school children.

* Free laptops for 1st year engineering, medical, polytechnic and first grade colleges proposed.
* New Raichur university with all colleges in Raichur and Yadgir districts to be established. 25 new polytechnics in rural areas proposed.
* Ambulance services to be streamlined with all 1538 ambulances under two different departments to be integrated. One ambulance for every 10 to 15 kms or 35000 population proposed.

* Like Namma Canteen in Bengaluru, Saviruchi Mobile Canteens in all 30 districts through Zilla Stree Shakthi associations.
* Popular Ksheera Bhagya scheme of providing milk to school children proposed to be increased from existing 3 days to 5 days in a week.

* Eggs for Anganwadi children two days a week from June 2017 across state.
* New airports to be built in Karwara, Madikeri and Chikkamagaluru.
* Govt to set up film city in Himmavu in Mysuru for the development of Kannada film industry.
* Planetariums proposed in Mangaluru, Madikeri and Gadag.
* New scheme of Yuva Yuga to train 1.10 lakh people in IT, electronics, animation and other sectors proposed.
* For decongestion of traffic in Bengaluru city, PWD to develop 150 km road through K’taka Road development corporation at a cost of Rs 1455 crore.
* New scheme of free LPG service for 5 lakh poor families not covered under the Ujjvala scheme announced.
* Anna Bhagya to see an increase in food grains distribution from current 5 kg to 7 kg per person.
* Rs 1600 per beneficiary under the scheme named Anila Bhagya announced.
* With the controversial steel bridge shelved, budget proposes widening of Hebbal flyover and construction of an under bridge at a cost of Rs 88 crore.
* Cash prize for Olympic medal winners hiked to Rs 5 cr for gold, Rs 3 cr for silver and Rs 2 cr for bronze medals along with group A govt jobs.
* Namma canteen to serve breakfast for Rs 5 and lunch for Rs 10.
* Bengaluru Development Authority to complete 3000 flats by end of 2017-18, says Siddaramaiah.

* High end motorbikes, above Rs 1 lakh, to become expensive as MVT increased to 18 per cent from 12 per cent.

* BMTC to induct 3000 more buses, out of which 150 will be run on electricity, 50 electric buses for Mysuru.
* Karnataka government to regulate multiplexes by making the maximum entry fee at Rs 200.
* Rs 5080 crore allotted for agricultural sector. Industrial growth expected at 2.2%.
* Siddaramaiah lifts VAT on wine, beer, wine and hard liquor.
* Rice quota under ‘Anna Bhagya scheme’ has been increased to 7kg from 5kg.
* Rs 400 crore grant for Chennai-Bengaluru- Chitradurga Industrial corridor.
* Separate toilets for women staff in police stations. Dial 100 service extended to districts.
* Siddaramaiah announces Siddaramaiah ‘Namma Canteen’ on the lines of Tamil Nadu’s ‘Amma Canteen’

* Rs 1.86 lakh crore budget presented in Bengaluru. No major changes in VAT rate structure in view of GST.
* Siddaramaiah, who holds the record of being the only Karnataka CM to present the highest number of budgets, is expected to focus on farm-loan waiver.
* With the GST coming into existence later this year, the chief minister has little scope to announce fresh taxes.
* The budget will be Siddaramaiah’s best opportunity to shore up support before the 2018 assembly elections and the Nanjangud and Gundlupet bypolls in April.


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