In Karnataka, Fresh taxes to net 3350 crore rupees have been levied in the budget for the year 2012-13 presented in the state assembly today. Chief Minister Mr Sandanda Gowda who also holds the finance portfolio in his first budget speech said the plan outlay for the next financial year is fixed at 42030 crore rupees which is 10.4 per cent larger than the present outlay.Pointing out that the budget size has exceeded 1 lakh crore rupees for the first time, the chief minister said the Government is committed to ensure that this large outlay is well utilized for overall development of the State and its peopleSeeking to give thrust to infrastructure, Mr. Sadananda Gowda said a comprehensive Karnataka Strategic Infrastructure Investment Plan with a large bouquet of investment ready infrastructure projects in 12 sectors is being prepared with assistance of competent consultants and transaction advisors.In a bid to deter smoking, the Chief Minister said VAT at 5 per cent will be levied on beedies while the VAT on cigarettes and other tobacco products is being hiked from 15 to 17 percent.Providing relief to the people, Mr. Sandananda Gowda proposed to reduce the Sales Tax on Diesel by 1.25 per cent bringing down the tax rate from 18% to 16.75%.Reaching out to the workers in the unorganized sector, the chief minister said free insurance benefits, covering natural and accidental deaths, permanent disability due to accident and educational scholarships will be provided to 20 lakh unorganized workers under Janashree Bima Yojana in association with LIC.Mr Sandananda Gowda said a legislation will be enacted making it mandatory for the MBBS undergraduates and post-graduates to serve one year in rural areas immediately after successful completion of the Course. The CM also added that Sixth Pay Commission recommendations will be implemented from 1st of April,2012.