ECONOMIC GROWTH AND AGRICULTURE SECTOR IN KARNATAKA

• GSDP Growth: Karnataka’s GSDP grew at 10.2% in nominal terms for 2023-24.
• Agriculture Contribution: Growth driven by a strong south-west monsoon, positively impacting the agriculture sector.
• Supply and Demand Dynamics: Improved agricultural output contributes to both supply and demand-side growth factors.

Inflation Trends

• National Inflation Rates: Inflation rose from 4.83% in April to 5.49% in September.
• Food Inflation Outlook: Expected to decrease due to good kharif sowing and favorable rabi season projections.

Revenue Receipts and Capital Inflows

• Revenue Growth:8% increase in revenue receipts during the first half of the fiscal compared to last year.
• Foreign Investments: $3.5 billion in foreign investments were attracted in the first half of the fiscal.
• Capital Investment: Government expenditure on capital projects rose by 28.3% compared to the previous year.

Global Capability Centre (GCC) Policy

• Incentives: GCC policy 2024-29 offers rent and tax breaks to attract international tech, research, and development companies.
• Regional Promotion: Focus on investments beyond Bengaluru in cities like Mysuru, Mangaluru, Hubballi-Dharwad, and Kalaburagi.

Revenue Surplus and Deficit Management

• Surplus Achievement: Revenue surplus of ₹3,648 crore reported for the April-September period.
• Deficit Projections: Revenue deficit estimated at ₹27,354 crore for 2024-25, managed through resource mobilization and effective expenditure control.

Borrowings and Liabilities

• Borrowing Details: Budgeted gross borrowings of ₹1.05 lakh crore with ₹24,974 crore for repayments.
• Current Fiscal Performance: ₹7,349 crore borrowed and ₹8,144 crore spent on loan repayments as of September.
• Liabilities Projection: Total liabilities to rise from ₹5.81 lakh crore in the previous fiscal to ₹6.65 lakh crore.