CM Siddaramaiah announces 0% interest on short-term farm loans

[email protected] (News Network)
July 12, 2013

Bangalore, Jul 12: The Congress government in Karnataka today announced loans to farmers at zero per cent up to Rs two lakh and enhancement of creamy layer limit of backward classes by Rs one lakh, as it sought to implement key election promises less than two months into office.

Presenting the "revised" 2013-14 budget in the Legislative Assembly -- the BJP government had unveiled the first in February before being voted out, Chief Minister Siddaramaiah said it would be at the interest rate of one per cent for Rs two lakh to Rs three lakh from cooperative institutions.

Earlier, short term loan up to Rs one lakh was provided at zero per cent interest and at one per cent interest from Rs one lakh to Rs three lakh.

Siddaramaiah, who has the distinction of presenting seven budgets in the past and kept the finance portfolio himself this time, announced that the creamy layer limit of Backward Classes would be enhanced from the existing Rs 3.5 lakh to Rs 4.5 lakh.

"Caste wise, social and education survey of all castes will be undertaken through Permanent Backward Classes Commission", he said.

The Chief Minister announced reduction of sales tax on diesel from 16.75 per cent to 15.65 per cent. "With this tax reduction at current prices, the price of diesel would come down by 51 paise per litre at Bangalore", Siddaramaiah said.

The government proposed to increase the rate of additional excise duty by 16 per cent to 40 per cent across all the 17 slabs.

He said relief and measures for additional resource mobilisation along with effective compliance and enforcement measures are expected to fetch additional Rs 1452 crore.

VAT rates which had been increased from five per cent to 5.5 per cent, and from 14 per cent to 14.5 per cent for a period of one year from August 2012 was proposed to be continued beyond July 31 this year, Siddaramaiah said.

The budget had something to cheer for schoolgirls, women and transgenders.

To encourage enrolment and attendance of girls in first standard in government schools, Rs two would be given to girls for each day's attendance.

The Government intends to provide scholarship and free education to students, whose parents are affected with HIV/Leprosy, for higher education, according to the budget, which also said free ten sanitary napkin pads would be provided to 32.50 lakh females.

A new scheme called "Manaswini" would be introduced to provide monthly pension of Rs 500 to the unmarried women below poverty line who have crossed the age of 40 years and for divorced women below the poverty line.

A new scheme "Mythri" would be launched for providing monthly pension of Rs 500 to transgenders.

Siddaramaiah said the total receipts are estimated to be Rs 1,20,717 crore during 2013-14, while the total expenditure is estimated to be Rs 1,21,611 crore consisting of revenue expenditure of Rs 97,391 crore and capital expenditure of Rs 18,380 crore and debt repayment of Rs 5,840 crore. "Revenue surplus is expected to be Rs 596 crore", he added.

sid_budget

Key announcements:

New parking policy in City Corporations including Bangalore.

Rehabilitation scheme for Endosulfan victims.

Four new Medical Colleges in State.

10 fast track courts to try crimes against women.

SSLC/PUC exam management system to be restructured.

Higher Education Academy to be set up in Dharwad.

New government women's colleges to be set up in 15 districts.

Rs 100 crores for Solid Waste Management.

Rs 100 crores for Christian community in the state.

Rs 100 crores to develop lakes and remove encroachers.

Mythri Scheme: Rs 500 monthly pension for transgenders.

Rs 100 crores earmarked for skywalk for citizens.

Interest-free loans for farmers up to two lakhs. Subsidised loan between 2 lakh to 10 lakh to farmers.

Rs 100 crore for weavers .

Textile park at Yadgir, Granite park at Chamaraja Nagar, Rs 10 crore for the aerospace park; Rs 50 crore aid for SC/ST and regliogious bodies.

Support price for Milk producers increased from Rs 2 to Rs 4.

Sector-wise allocation:

Education: Rs 18, 923 crores

Commerce and Industry: Rs 8856 crores

Urban Development: Rs 9286 crores

Water Resources: Rs 9363 crores

Health and Family Welafare: Rs 5421 crores

Energy: Rs 10, 312 crores

Agriculture and Horticulture: Rs 4378 crores

Animal Husbandry: Rs 1903 crores

Home and Transport: Rs 5315 crores

Social Welfare: Rs 5046 crores

Women and Child Welfare: Rs 3466 crores

Revenue: Rs 3797 crores

Housing: Rs 1365 crores

Bangalore:

Rs 2250 crores allocated for peripheral ring road.

Arkavathy Layout sites to be allotted by March, 2014.

Rs 600 crores BDA complex at RT Nagar.

Rs 4150 crores JNNURM projects in Bangalore and Mysore.

To develop International Convention Centre at Devanahalli.

M G Road and Brigade roads to get wi-fi.

Kempe Gowda layout to be formed by March, 2014 for 5000 allotees.

Bangalore Suburban Rail Corporation to be set up soon.

Indian Institute of Public Health to come up in Bangalore.

All RTO offices in Bangalore to be computerised.

Four more RTO offices in Bangalore.

Rs 150 crore allotted for elevated road between Jayadeva Hospital and Silk Board.

Rs 250 crores allotted for developing infrastructure in 110 villages that has been added to BBMP.

1.6 lakh saplings to be planted at a cost of Rs 20 crores.

Sarjapur and Bannerghata roads to be widened at a cost of Rs 300 crores.

Rs 500 crores earmarked for grade separators at important junctions.

Tax:

Cess on diesel reduced by 51 paisa/ litre from Rs 16.75 to Rs 15.65.

Alcohol becomes more expensive.

No change in VAT.

50 % concession for Maxi Cabs from road tax.

Additional excise duty increased between 16% to 40% across 17 slabs.

Watching cinemas in A/C theatres become more expensive.

Service tax on A/C theatres increased from Rs 1.5 to Rs 3.

Excise collection stands at Rs 12, 600 crores.

Commercial Tax collection estimated at Rs 37,740 crores.

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News Network
December 15,2025

Udupi, Dec 15: What was meant to be a post-pilgrimage gathering turned tragic in Padukere village of Brahmavar taluk, Udupi district, late Sunday night, when a clash among youths escalated into a fatal assault, leaving one man dead.

The victim has been identified as 30-year-old Santosh Mogaveera, a resident of Padukere.

According to preliminary information, the incident took place during a late-night drinking party involving a group of local youths who had recently returned after completing their pilgrimage to the Sabarimala shrine. An argument reportedly broke out among the group and soon escalated into a violent confrontation.

During the ensuing brawl, Santosh Mogaveera was allegedly assaulted and collapsed at the spot after sustaining serious injuries. He was rushed by local residents to a private hospital in Brahmavar, where doctors declared him dead.

On receiving information, senior police officials, including Brahmavar Circle Inspector Gopikrishna, Kota Police Sub-Inspector Praveen Kumar T, Station ASI Manthesh Jabagoudar, and head constables Pradeep and Ashok, visited the spot and conducted an inspection.

Police have taken four youths into custody in connection with the incident. A case has been registered at the Kota police station, and further investigation is underway to ascertain the exact sequence of events leading to the death.

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News Network
December 15,2025

Mangaluru, Dec 15: Air India Express has announced that it will resume direct flight services between Mangaluru and Muscat from March 2026, restoring an important international air link for passengers from the coastal region.

Airport authorities said the service will operate twice a week—on Sundays and Tuesdays—from March 1. The initial flights are scheduled on March 3, 8 and 10, followed by March 15 and 17, with the same operating pattern to continue thereafter. The flight duration is approximately three hours and 25 minutes.

The Mangaluru–Muscat route was earlier operated under the 2025 summer schedule, with services beginning on July 14. At that time, Air India Express had operated four flights a week before suspending the service.

Officials said the summer schedule will come into effect from March 29, after which changes in flight timings and departure schedules from Mangaluru are expected. Passengers have been advised to check the latest schedules while planning their travel.

The resumption of direct flights to Muscat is expected to significantly benefit expatriates, business travellers and others, further strengthening Mangaluru’s air connectivity with the Gulf region.

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News Network
December 15,2025

Mangaluru police have arrested a 27-year-old NRI on his return from Saudi Arabia in connection with an Instagram post allegedly containing derogatory and provocative remarks about the Hindu religion, officials said on Monday.

The accused, Abdul Khader Nehad, a resident of Ulaibettu in Mangaluru, was working in Saudi Arabia when the post was uploaded, police said.

A suo motu case was registered at the Bajpe police station on October 11 after an allegedly offensive post circulated from the Instagram account ‘team_sdpi_2025’. Police said the content was flagged for being provocative and derogatory in nature.

During the investigation, technical analysis traced the Instagram post to Nehad, who was residing abroad at the time, a senior police officer said. Based on these findings, a Look Out Circular (LOC) was issued against him.

On December 14, Nehad arrived from Saudi Arabia at Calicut International Airport in Kerala, where he was taken into custody on arrival. Police said further investigation is underway.

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