Ahead of GST compensation from centre, Karnataka to borrow Rs 33,000 cr


From Our Special Correspondent

Daijiworld Media Network

Bengaluru, Sept 15: Even as the vexed issue of payment of compensation due to Karnataka on account of the implementation of the Goods and Services Tax (GST), the State Government has decided to raise a loan of Rs 33,000 crore this year.

The decision taken at the State Cabinet meeting chaired by Chief Minister BS Yediyurappa in Vidhana Soudha in Bengaluru on Tuesday follows the Narendra Modi regime’s approval under its COVID 19 economic stimulus package that had allowed the State Governments to increase their fiscal borrowing on account of the sharp fall in revenues by permitting them raise the fiscal deficit limit from the present 3% to 5% under the Fiscal Responsibility Act.

Briefing reporters after the State Cabinet meeting, Law and Paliamentary Affairs Minister J C Madhuswamy said the enhanced fiscal deficit limit of 2% allows the State Government to go in for market borrowing of Rs 36,000 crore. ``However, we have decided to go in for a borrowing of Rs 33,000 crore as an one time measure to carry out the State’s developmental activities,’’ he said.

Answering questions, he made it clear that the GST Council was yet to take a decision on releasing the GST compensation that is due to Karnataka.

Madhuswamy said the State Cabinet has approved release of Rs 11.65 crore for installing elaborate safety measures in 583 government hospitals having x-ray plants in accordance with the Atomic Energy Regulation Board’s stipulations.

The State Cabinet also decided to approve the demolition of the Karnataka Bhavan 1 and 2 buildings in Delhi at a cost of Rs 120 crore. Chief Minister B S Yediyurappa will be participating in the BhoomiPooja for the project on September 18, when he would be in the national capital, the minister said.

Madhuswamy said the State Cabinet agreed to provide Government guarantee to the ESCOMS for raising a loan of Rs 5575 crore.

The State Cabinet approved the proposal for establishing of two private universities by the Vidyanidhi Education Trust and JagadguruMurugharajendra Mutt’s educational institutions in Chitradurga.

In another decision, the State Cabinet cleared the long pending issue of grant of mining leases to the National Mineral Development Corporation (NMDC) at Donimalai in Sandur taluk of Ballari district. The proposal is likely earn royalty of Rs 647 crore per year the State.

The State Cabinet approved release of Rs 14.89 crore for construction of a flyover near Kyathasandra on the Bengaluru-Tumkuru highway near the Siddagranga Mutt. The total cost of the construction work to be carried out jointly with the Railways is Rs 35.43 crore.

In another decision, the State Cabinet accorded administrative approval for the construction of the Mysuru deputy commissioner’s office at a cost of Rs 84.69 crore.

 

  

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Comment on this article

  • Indian, Sharjah

    Wed, Sep 16 2020

    Centre will keep State Government's share of GST and States are forced to borrow. Wah Modi Wah. When we will have the Govt with well educated people?

    DisAgree Agree Reply Report Abuse

  • Pavan, Mlr

    Wed, Sep 16 2020

    Center fooling state state fooling people of karnatka...yeddy bjpee only nataka

    DisAgree Agree [1] Reply Report Abuse

  • Aam Aadmi, Mangalore

    Wed, Sep 16 2020

    This is deliberately done as part of RSS agenda. RSS wants dictatorship in India and not democracy. They want to break the federal structure of states and want the Centre to become all powerful. To make anyone your slaves just control its finances. If a state is borrowing money from centre then it has to return the money with interest. In future all the states will become slaves of centre and have to dance to the tunes of centre. Enjoy as the situation will become more dark for India under BJP.

    DisAgree [1] Agree [11] Reply Report Abuse

  • Shararth Kotian, Mangalore

    Wed, Sep 16 2020

    Bhai saab. Why intellectual always behind RSS... Is there any proof or source for what you have said it now. Your comment doest not make any sense .

    DisAgree [4] Agree Reply Report Abuse

  • Aam Aadmi, Mangalore

    Wed, Sep 16 2020

    There is no medicine invented for common sense. Once this scientific feat is accomplished, I will buy this medicine and give it to you as a gift. Till then my best wishes.

    DisAgree Agree [1] Reply Report Abuse

  • Naresh, Kerala

    Tue, Sep 15 2020

    Centre announced the GST regime with much fanfare and now the situation is that the States have to queue behind the Centre with a begging bowl; that too, to get what is rightfully due to the States. GST was just another step in the Centre’s plan of systematic destruction of the federal structure. The shameless and servile Karnataka Government has shown an obsequious attitude and agreed to borrow from the RBI, whereas Kerala and other non-BJP / BJP Governments asked the Centre to borrow itself from the RBI instead of asking the States, and provide what is rightfully due to the States. Borrowing by Karnataka shows the spineless character of the Yeddy Government.

    DisAgree [2] Agree [17] Reply Report Abuse

  • Ajay Rebello, Kallianpur

    Tue, Sep 15 2020

    Borrowing so no chance of giving compensation for last year's flood victims forget this year's. Perhaps give them some of MLA buying money?

    DisAgree Agree [11] Reply Report Abuse

  • Charles D'Mello, Pangala

    Tue, Sep 15 2020

    Mr. Yeddurappa could have asked more money...!!!??? Anyway if Nirav Modi, Vijay Mallya, Mehul chowskey, Lalith modi are living in other countries.......What is the problem for you.....??????

    DisAgree [1] Agree [18] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Tue, Sep 15 2020

    Very Difficult Days Ahead ...

    DisAgree [1] Agree [18] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Bangalore

    Tue, Sep 15 2020

    Sometimes, I am confused whether I should donate Rs 2000 to PM/CM Relief fund or purchase whiskey of same price. By donating, I am going to get a tax rebate of Rs 600 on my 30% tax slab and actually, what I pay is Rs 1400 to Govt. But, with Excise and GST together, that is 72%, which works out to Rs 1440, actually, I am paying to govt Rs 40 more, plus I get 12.5 pegs pleasure of whiskey in a 750 ml bottle that keeps me in high spirit.

    By purchasing whiskey, I am giving employment to distillery, suppliers, bar owners and many others who make bottles, labels and caps. This PM/CM Relief fund where it is used, if at all, I will not know andI cannot question.

    DisAgree Agree [20] Reply Report Abuse

  • Veer, Nagpur

    Tue, Sep 15 2020

    If you want to buy whiskey, tax relief, benefit from PM CARES Fund and Clean Chit then say 'Chowkidar Zindabad'. Doesn't matter what your religion and food habits are. Instantly you become patriot and legal citizen of India and will be above law without CAA, NRC and NPR. Enjoy. I don't want to inference with your voting rights and choice, it's your private and personal choice.

    DisAgree [1] Agree [12] Reply Report Abuse

  • Veer, Nagpur

    Tue, Sep 15 2020

    Are we going to become $5 tr economy by borrowing????????????...In any case now it looks more like Make-in India economy.

    DisAgree [1] Agree [27] Reply Report Abuse

  • JNB, Bejai

    Tue, Sep 15 2020

    That is only in TV debates.
    Reality is in front all of us.

    DisAgree Agree [20] Reply Report Abuse


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