Mysuru: Chief Minister Siddaramaiah will present the first Budget of the Congress Government in the State on July 7. This is the 14th budget presented by Chief Minister Siddaramaiah as Finance Minister. Though Siddaramaiah knows that he has a good understanding of the economy, this can be termed as a tough budget in his political career.
He, who was leading the Congress election then, had no much freedom due to fear of the party losing the elections, with the Congress then focusing on populist slogans as compared to BJP’s jingoism. The Chief Minister has been given a blueprint of the Government’s works and development projects and it will be interesting to see how he fulfills it.
While the Government is in a hurry to deliver on its five pre-poll promises, the Congress Government will have to carefully present the Budget with an eye on Assembly elections in various states by the end of this year and the Lok Sabha elections due in April-May next year.
Important sectors like irrigation, infrastructure, roads, agriculture, power and other sectors cannot be ignored amid the fulfillment of guaranteed projects. This allows the Opposition to allege that development has taken a backseat due to the party’s political agenda. The economy, which has been derailed due to the Covid pandemic in the last three years, needs to be restored to normalcy. The problem is that the weather is frequently affecting agriculture.
All eyes are on how the Congress Government fulfills the guarantees given to the people, how it grants funds for development works amid uaranteed schemes, and how the government demonstrates economic wisdom.
A delay in monsoon can lead to a drought-like situation. It will force the state to formulate a plan to address it. In a federal structure, the state has limited resources. It is difficult to mobilise resources other than raising excise duty, stamp duty and electricity duty.
You have to approach the Centre or the RBI to get a loan. If the Central Government does not provide rice in the coming days, the Government may face further difficulties for the smooth implementation of the Anna Bhagya scheme. It could be a weapon for the Opposition if they resort to credit to fulfill the party’s promises. If the Government does poor financial management it can also come under public criticism.