K’Taka Achieved Outstanding Fiscal Performance In 7 Months: Govt


(MENAFN- IANS) Bengaluru, Oct 30 (IANS) Karnataka has achieved outstanding fiscal performance in the first seven months of 2024-25, generating Rs 1,03,689 crore in revenue, achieving 53 per cent of its annual target of Rs 1,96,525 crore, the official statement from the Chief Minister's Office stated on Wednesday.

This has been achieved across five major revenue departments namely, commercial taxes (GST), excise, mining, stamps and registration, and transport.

With a year-on-year growth rate of 11.2 per cent, this achievement reflects the state's robust economic fundamentals driven by strong economic growth, increased consumer demand, better governance, and the government's focus on creating a business-friendly environment.

This sentiment resonates globally, as Karnataka has climbed from third place in 2023-24, surpassing Gujarat, to second place in FDI inflows during the first quarter of 2024-25.

The state attracted a total of 2.2 billion Dollars in investments in the first quarter, reflecting growing investor confidence in its progressive economic policies.

The government has implemented bold reforms by revising stamp duties, excise duties, and user fees, which had remained stagnant for years. Additionally, the mining sector has overcome long-standing interdepartmental challenges, positioning itself to exceed its revenue targets, the statement said.

“Karnataka aims to sustain an economic growth rate (GSDP) at 14 per cent by maintaining capital expenditure above 2 per cent of GSDP in the current fiscal year.

The government is using two levers to increase government capital investments in the state. The government is in advanced talks with various external funding agencies such as the World Bank and Asian Development Bank in order to execute focused infrastructure projects.

“The government is pursuing Rs 16,750 crore in projects with international financial institutions,” according to the official statement.

Karnataka's fiscal strategy balances welfare guarantees with capital investments, leveraging innovative financing models to drive sustainable development. Through targeted reforms and ambitious infrastructure projects, the state is establishing a new model of growth, positioning itself as a leader in fiscal management and inclusive economic development, it stated.

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IANS

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