In Karnataka, a 119 crore rupees surplus budget for 2012-13 was presented in the state assembly on Wednesday. Chief Minister Mr Sadananda Gowda who also holds the finance portfolio said that the budget size has exceeded 1 lakh crore rupees for the first time and assured that this large outlay will be utilized for overall development of the State.The chief minister announced reduction of taxes on diesel by 1.25 percent, lowered stamp duty on sale deeds. He also provided relief under VAT for 11 commodities including total tax exemption on paddy, rice, wheat , pulses for another year.In a bid to deter smoking, the Chief Minister said VAT at 5 per cent will be levied on beedies. VAT on cigarettes and other tobacco products is also being hiked from 15 to 17 percent. Mr Sandananda Gowda also hiked excise duty on Indian Made Foreign Liquor to 10 percent. Additional duty on beer and low alchoholic beverage was also levied.Reaching out to the government servants, the chief minister announced that the pay commission recommendations have been accepted and would be implemented from April this year. He said the additional expenditure on account of the pay and pension revision would be around 4,450 crore rupees annually Seeking to give thrust to infrastructure, the chief minister 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.Following the footsteps of his predecessor B.S. Yeddurappa, Mr. Gowda presented a separate budget for agriculture, providing 19,660 crore for agriculture and allied sectors in the coming fiscal.The Chief minister announced that the interest free short term crop loan would be given to farmers availing loans upto 1 lakh rupees.