Why Karnataka's new government has a job on its hands despite 8.5% growth

In 2016, Karnataka recorded the second-highest number of farmer suicides-1,212, behind only Maharashtra

Karnataka is grappling with income inequality, an agrarian crisis and child malnutrition even though its economy grew at 8.5%–second-highest among 10 states and union territories in 2017–to a gross domestic product of Rs 9.5 lakh crore ($141 billion) in 2017-18, according to the latest economic survey.

The 2018-19 budget for the state is Rs 2.09 lakh crore ($31 billion), which is 12% more than the budget estimate of Rs 1.86 lakh crore for 2017-18. There has been an increase in the state’s revenue as well. Karnataka’s tax revenue for 2018-19, including goods and services tax (GT) compensation, is estimated to be Rs 1.03 lakh crore ($15 billion), an increase of 13% over the revised estimate for 2017-18.

The economic survey 2017-18 highlights Karnataka’s progress on the per capita income front too. With a per capita income of Rs 142,267 per annum, Karnataka’s citizens are India’s 10th richest, behind Delhi, Haryana, Maharashtra, and Kerala in 2015-16 according to national accounts.

This prosperity, however, has not led to equal distribution of wealth, robust agriculture or good access to public health systems.

Bengaluru city earns five times as much as poorest district, Kalaburagi

Income disparity is high in the state. Bengaluru urban is the richest pocket with a per capita income of Rs 320,346 per annum. Kalaburagi in the north is the poorest, with a per capita income of Rs 65,493 per annum, almost one-fifth that of the state’s capital city.

Source: Karnataka Economic Survey 2017-18; Figures in Rs

In primary education (grades I to V), Yadgir in northeast Karnataka suffers a dropout rate–calculated by subtracting the sum of promotion and repetition from 100 in every grade–of 12.3%. In Bengaluru Urban, this rate is 2.9%. Yadgir’s average primary dropout rate exceeds Mizoram’s (10.1%), according to the District Information System on Education (DISE) 2015-16.

Source: District Information System on Education 2015-16; Figures in %

This inequality is evident in health indicators as well. For example, in Dakshin Kannada, nearly 92% households reported improved sanitation in 2015-16. But in Yadgir, this rate stood at 18.1%, according to National Family Health Survey 2015-16.