Bangalore, Feb 7 (IANS) Karnataka's economy is projected to grow 5.9 percent this fiscal (2012-13) as against 5.5 percent last fiscal (2011-12), despite the service sector's contribution declining by 60 basis points (0.6 percent) year-on-year (YoY).
According to the economic survey released Thursday, just before Chief Minister Jagadish Shettar presents the state budget for the ensuing fiscal (2013-14) in the legislative assembly Friday, the agriculture and allied sectors, however, have recovered from the poor peformance last year, and the effects of the severe drought that followed deficit rainfall during the southwest monsoon in the first half of this fiscal (April-Sept).
"The gross state domestic product (GSDP) is expected to grow 5.9 percent to Rs.303,444 crore (Rs.3.3 trillion), with the services sector contributing 8.9 per cent (9.5 per cent last fiscal), agriculture sector 1.8 percent (-2.2 percent)," said the survey, which was tabled in the state legislature.
The services sector comprises real estate, business services and banking and insurance, among others.
Food grain production is likely to be 12.5 million tonnes as against the target of 13.7 tonnes due to drought in 157 local bodies'areas across the state, with area coverage under kharif and rabi seasons being 1.62 million hectares of farmlands.
"The state government's initiatives in the primary sector, including agriculture and allied activities, contributed to better redistribution of wealth and inclusive growth," the survey highlighted, though the state's growth rate will be a tad less than the all-India average.
Slow down in the national economy led to the industry sector's growth rate across the state stagnating at 2.4 percent as in last fiscal, with a sharp decline in manufacturing and contraction in mining and quarrying sectors.
Revenue realisation from major minerals, however, increased 18 per cent YoY to Rs.875 crore from a target of Rs.742 crore this fiscal till January.
Per capita net income at current prices is estimated at Rs.78,049 this fiscal, which will be an increase of 13 per cent YoY from Rs.69,051 last fiscal. Per capita income at constant prices will be Rs.44,389 as against Rs.42,218 a year ago.
"The state's revenue resources are recovering and expected to go up to 15.64 percent from 15.28 percent last fiscal. The state's tax revenues increased to Rs.51,821 crore from Rs.25,987 crore in 2007-08, showing a CAGR of 14.8 per cent," the survey noted.