Bengaluru: Siddaramaiah has defended his decision to increase tax on various commodities and services stated in the budget proposals for 2016-17.

The Chief Minister rejected the demands of the Opposition in the discussion on the budget in the Legislative Assembly on Wednesday. The burden on the state government would be about Rs 10,000 crore if he would waive the loans of the farmers. The interest would be waived if the farmers repay the principal amount by September 30 this year.

The BJP members staged a walkout listening to Siddaramaiah as they expected roll back in tax of fuel prices and waiving the farmers’ loans.

Siddaramaiah said the state borrowings, fiscal deficit, debt servicing were well within the limits set by the Karnataka Fiscal Responsibility Act. “The government has set a robust plan size of Rs 85,375 crore for the year 2016-17, higher than most of the neighbouring states. The growth in plan size stood at 13.7% compared to the previous fiscal. The state has done well despite the severe drought and the shortfall in commercial taxes meeting its budgetary target by Rs 800 crore due to fall in prices of petrol and diesel,” he said.

Siddaramaiah has increased sales tax on petrol from 26% to 30% and diesel from 16.65% to 19% resulting in the increase of petrol price by Rs 1.89 per litre and diesel by Re 0.98. He defended the move saying that the Centre increased the excise duties thrice in the last one year, but the state never increased the tax. Soft drinks, beer, liquor, cable TV?subscription, private bus transport and agreement for sale of movable property would cost more in the coming days.

The House passed the Karnataka Appropriation Bill, 2016 giving the government the authority to spend Rs 57,308 crore for expenditure up to July 31 by a voice vote. The House all passed other consequential bills pertaining to tax proposals in the budget.