Bangalore: In tune with its Common Minimum Programme (CMP) the Congress-JDS (Janata Dal-Secular) coalition Government today (July 19,2004) announced ban on online lottery, farm credit at six per cent interest and extension of mid-day meal up to seventh standard children in its 2004-05 Budget proposals that showed a surplus revenue of Rs 72.83 crore.

Presenting the maiden Budget of the coalition Government Deputy Chief Minister Siddaramaiah, in-charge of finance department reduced taxes by one per cent on 125 articles, but enhanced taxes ranging from two to seven percent on 26 commodities including cigarette filters, computer software, electronic goods and wheat products.

Bowing to public outcry demanding ban on online and internet lotteries, the contract with these lottery operators has been terminated and Karnataka will be declared as an "online and internet lottery free zone", with immediate effect, he announced.

The loss of revenue to the tune of Rs 250 to the exchequer following the ban on online and internet lotteries would be covered through tax rationalization measures, he said.

Without proposing any change in Excise duty or license fee structure on IML (Indian Made Liquor), Siddaramaiah proposed radical changes in the arrack policy to eliminate the problem of non-duty paid arrack.

In yet another sop to farmers, the Government decided that henceforth cooperative credit institutions will not charge compound and penal interest and waived interest on such loans to the tune of Rs 49 crore.

Siddaramaiah said for the first time after a gap of eight years, he was commending a budget with a revenue surplus of Rs 72.83 crore and this signaled a major fiscal correction and reiterated the Government's commitment to reform finances.

Declaring that the Government will give a sharper focus to the development of North Karnataka he said an outlay of Rs 7,170 crore has been provided this year.

To fulfill its promise of being farmer friendly, the Government to give thrust to agriculture enhanced the plan outlay substantially from Rs 412 crore in 2003-04 to Rs 840 crore in 2004-05, a growth of 104 per cent, Siddaramaiah said adding that Rs 60 crore has been set apart to ensure farm credit at 6 per cent rate of interest.

The Government also unveiled some new programmes- Health and Nutrition Project to improve and extend the primary healthcare system at a cost of Rs 765 crore, strengthening of the medical relief corpus fund for beneficiaries under Yashaswini health scheme to Rs 50 crore and a Rs 20 crore package to weavers.

The budget proposals brought cheers to Small Scale Industries, with the Government announcing measures to clear subsidy arrears partly by authorizing the Karnataka State Finance Corporation (KSFC) to raise Rs 65 crore funds.

It announced "Shrama Shakti" programme for SC, STs, BCs and Minorities to upgrade their skills to take up self-employment activities for which Rs 20 crore has been earmarked.

A caste-wise survey of the Backward Castes will be taken up with Central Assistance to enable better planning and targeting of welfare programmes at a cost of Rs 2 crore, he said.

Siddaramaiah said the Government would not have to borrow to meet its revenue expenditure and ensure that current revenues met it. Increased revenue balances in future years will enable the state to create additional assets, he said and announced that fiscal deficit has been reined at Rs 4246.64 crore which was much lower than the fiscal deficit of Rs 5564 crore in 2003-04.

Pointing to Budget Estimates 2004-05, he said the total receipts are expected to be Rs 32,065.99 crore, comprising revenue receipts of Rs 25,510.31 crore and capital receipts of Rs 6555.68 crore.

The total expenditure is likely to be Rs 31,591.88 crore of which revenue expenditure is estimated at 25,437.48 crore and capital expenditure is estimated at Rs 6154.40 crore.

Siddaramaiah said the Government expects to raise Rs 14,957.96 crore in tax revenue and Rs 4486.35 crore in non-tax revenue. In addition it expects to raise Rs 2615.91 crore from small savings, Rs 1087.96 crore from Market Borrowings (net), Rs 585 crore from Negotiated Loans and Rs 2238.05 crore as total loans from the Central Government. He sought the approval of the house for the full budget for 2004-05.