BANGALORE: The Karnataka state Budget for 2000- 2001, which
is also the maiden budget of the Congress government, has proposed a host of
measures, without hurting the common man. The Karnataka chief minister S.M.
Krishna has laid stress on the information technology (IT) area and has also
identified a few other knowledge-based industries, as thrust areas for
development.
The chief minister also announced a five-year tax stability for these
industries. The CM, who has information technology close to his heart, announced
"tax stability" for this sector for five years. That only meant that his
government would stick to the recent reduction in the sales tax on hardware, in
spite of the neighboring states objecting to it. Expressing excitement on this,
the Association of Information Technology Leslie J. Lean said, "The state
budget is really good and the tax stability for five years is also excellent. To
stabilize an industry its tax also should be stable." He further added,
"In fact this was one of our recommendations that we submitted to Mr
Krishna and we are really glad that he announced the tax stability for five
years based on our recommendation." Mr Krishna has also proposed a scheme
to provide IT training to rural youth, called "Yuva.com". The CM sought a
vote on account for four months for the budget proposals that will come into
effect from April 1.
He also announced the setting up of state council for IT education and
training and increase in the number of students graduating in IT from 9620 to
20,000 and is also planning to set up two incubation centres for information
technology. Infosys Technologies Ltd. president, managing director and chief
operating officer Nandan M. Nilekani reacting to the Government of Karnataka
budget proposals said, "We welcome the various measures announced for the
knowledge-based industries, which should help further in IT penetration. The
need of the hour is to increase the pool of software professionals. The
government has taken the right steps by encouraging new colleges in IT and
actively supporting creation of private IT universities by professionals. The
Government's intention to increase the number of students graduating in IT from
9,620 to 20,000 will be welcomed by the industry. The setting up of the State
council for IT education and training should compliment the efforts initiated in
increasing the IT graduates. The setting up of IT incubation centres should
enhance the growth of a large number of small software companies."