The Karnataka State budget has not given much relief to Kannada cinema as a whole. It has set aside Rs.5 crores for the proposed building of ‘Amrutha Mahotsava Bhavana’ and reduced the non Kannada films entertainment tax from 40 percent to 30 percent. As of now Kannada films are enjoying the 100 percent entertainment tax exemption.

In the fight for survival with non Kannada films rage in Karnataka the boon has come for other language films in the BJP government budget.

In the Page No.59 and item No 225 in the section ‘Kannada Nudi Hirime and Samkruthi Garime’ the budget announced by Karnataka chief minister B.S.Yediyurappa on Friday afternoon says Rs.5 crore for ‘Amrutha Mahotsava Bhavana’.

In the page No.71 and item No.268 of the budget copy in the entertainment tax section the present ET for non Kannada films from 40 percent is reduced to 30 percent is mentioned.

The former SIFCC President and current President of Kannada Film Producers Association K.C.N.Chandrasekhar reacting to the budget said it is not happy news for Kannada cinema. The access to non Kannada films is easy now. This boon of reduction of ET to non Kannada films is a blow to Kannada cinema he opines.