Fiscal deficit narrows down to 2.12% from 2.79% in 2015-16

Bengaluru, Mar 16 (DHNS): The state is expected to show a Gross State Domestic Product (GSDP) growth of 6.9% for fiscal year 2016-17 as against 7.3% during 2015-16, less than nationally expected average of 7%, as per the Economic Survey of Karnataka for 2016-17. The cause for the drop in the growth is attributed to decline in the growth rate of industry and services sectors.

While the manufacturing sector is expected to grow at 2.2% compared with 4.9% during the previous year, the service sector is expected to grow at 8.5% as against 10.5% in the previous year.

“Advance estimates show that Karnataka’s GSDP at constant (2011-12) prices is expected to grow at 6.9% and reach Rs 8,71,995 crore in 2016-17,” the survey said. “The advance estimates of all-India GDP at constant (2011-12) prices is expected to grow at 7%,” it added.

There has been marginal decrease in the composition of GSDP of agriculture and allied activities and industrial sector from 11.77% and 24.7% in 2015-16 to 11.68% and 23.68% in 2016-17, respectively. However, there has been a marginal increase in the composition of the services sector from 63.53% to 64.64%.

The per capita income of Karnataka at current prices is estimated to be Rs 1,59,893 during 2016-17 as against Rs 1,46,416 for 2016-17, according to the survey. For the fiscal under consideration, the state has estimated a fiscal deficit of 2.12%, declining marginally from 2.79% in 2015-16. The revenue receipts saw a growth of 11.06%, to Rs 1,30758 crore in 2016-17, as compared with Rs 1,17,731 crore in 2015-16.

The state also saw the inflow of foreign direct investment worth $1,697 million for the first nine months of the current fiscal year, which amounted to 4.73% of the total FDI inflow into India. From April 2000 to December 2016, Karnataka attracted a total of $21,938 million of investment, constituting 6.76% of FDI inflow into India.

“The major adversaries for the investors are bureaucratic hassles, infrastructural deficiencies and power shortages,” the survey showed. “The government has taken several steps to address them,” it added.

In a positive development, unemployment showed a southward trend in the state. The number of job seekers as per the live register of employment exchanges was 3.34 lakh in December 2016, as against 3.41 lakh in March 2016, down 1.9%.

The state, famous for its IT prowess, contributed 38% to the software and services exports from India for the fiscal year 2015-16, according to the survey.

The exports from software/services for the fiscal under consideration stood at a whopping Rs 1,99,822 crore, while the total exports from the state stood at Rs 3,25,414 crore.