Bengaluru, June 19 (FN Representative) In a bid to meet its ambitious guarantees and foster development, the Congress government in Karnataka has turned to Boston Consulting Group (BCG) for innovative solutions, with land monetisation emerging as a key strategy.Among the recommendations put forth by BCG, the proposal to monetise approximately 25,000 acres of land near Bengaluru stands out as a promising avenue to bolster revenue streams and propel economic growth.The five guarantees, fervently promised during the assembly election, have placed considerable pressure on the Siddaramaiah-led government to deliver tangible results. With an estimated expenditure of Rs 36,000 crore earmarked for the fiscal year 2023–24, the government faces the dual challenge of financing these commitments while ensuring fiscal prudence.Chief Minister Siddaramaiah’s allocation of Rs 52,000 crore this year underscores the government’s commitment to fulfill its pledges, which are poised to benefit a substantial portion of the state’s populace.However, recognising the imperative for sustainable revenue generation, the government has heeded BCG’s advice to explore unconventional avenues, including the monetisation of land assets.The envisioned development of planned satellite towns in and around Bengaluru heralds a new era of urban expansion and infrastructure development. Areas such as Bidadi, Anekal, Hoskote, Devanahalli, and Doddaballapur are earmarked for comprehensive development initiatives encompassing housing, industrial layouts, and IT corridors.By enhancing land value and unlocking latent potential, these initiatives not only catalyse economic activity but also offer a viable avenue for revenue generation through land monetisation.
BCG’s recommendations extend beyond land monetisation, encompassing critical reforms in expenditure management across key departments. By fostering efficiency and accountability in departments such as irrigation, energy, and rural development, the government aims to optimise resource utilisation and streamline expenditure patterns.Furthermore, the government is exploring innovative fundraising mechanisms to augment its fiscal capacity. Improved compliance with Goods and Services Tax (GST) and property tax collections present untapped opportunities for revenue enhancement, as identified by Additional Chief Secretary (Finance) LK Atheeq.In tandem with these measures, the recent announcement of a cess hike on petrol and diesel underscores the government’s resolve to mobilise resources for development endeavours.While the move has elicited strong reactions, Commerce and Industries Minister MB Patil maintains that the incremental revenue is indispensable for financing guarantees and driving developmental initiatives. Despite the hike, fuel prices in Karnataka remain competitive compared to other states, providing some respite to consumers.As Karnataka embarks on this transformative journey, the convergence of strategic foresight, prudent fiscal management, and innovative policymaking will be instrumental in realising its development aspirations. The monetisation of land assets not only injects vitality into the economy but also heralds a paradigm shift in revenue mobilisation strategies, paving the way for sustained growth and prosperity.