Bengaluru: State keen on borrowing additional amount of Rs 15,000 crore


Daijiworld Media Network - Bengaluru (SP)

Bengaluru, May 21: The state government, which is under pressure to wriggle out of the vicious grip of coronavirus-related lockdown and infection, and to accelerate the growth of the state, plans to go for big borrowing. When presenting the budget, the chief minister had indicated that the government plans to raise loan of Rs 52,919 crore during the year 2020-21. Now, it wants to use the offer made by the centre and borrow about Rs 15,000 crore additionally.

With this, the state will be burdened with a loan of over Rs 68,000 crore in one fiscal, and there is proposal to amend Karnataka Fiscal Responsibility Act 2002 to make this possible. In this connection, Yediyurappa, who also holds finance portfolio, met finance department's additional chief secretary I S N Prasad, and held meeting in which the officials was asked to prepare proposals to raise loans from banks like JICA, Hudco etc and to send proposal to amend the Act for this purpose.


B S Yediyurappa

The state, as per the new norm of the central government that has increased the quantum of loan that can be raised by states from 3 percent of GDP of the state to 5 percent, is now eligible to raise about Rs 90.000 crore loan. The state government feels that raising loans is the only available option before it at this juncture as most of the income sources of the state have dried up and apart from below par revenue from many departments, it has to foot heavy unproductive expenditure.

Additional chief secretary I S N Prasad, said that the process may take some time as amendment to the act is necessary before raising additional loan.

 

 

  

Comment on this article

  • AM, Mangalore

    Thu, May 21 2020

    Always we should be critical of ruling party, However BSY is struggling very hard to contain Covid19 without central help. He is doing too much with the limited funds available. We seen him during natural calamity last year he did not get help from central Govt, even after his repeated requests.

    DisAgree [3] Agree [2] Reply Report Abuse

  • Cynthia, Kirem

    Thu, May 21 2020

    Centre waives loan of main business people... We request centre to waive the whole loan of Karnataka ..which us borrowed on good work... Please relieve us from the debt 🙏🙏🙏

    DisAgree Agree [5] Reply Report Abuse

  • Prakash, Mangalore

    Thu, May 21 2020

    Why loan from central government? Its tax payers money. Central government need refund tax payers money. Loan from central government will again burden to us.

    DisAgree Agree [9] Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, May 21 2020

    Yeddyurappa has a good equation with Narendra Modi ...

    DisAgree [1] Agree [6] Reply Report Abuse

  • Ajay Rebello, Kallianpur

    Thu, May 21 2020

    A dynamic industrial policy is the need of the hour. Karnataka is at last place among the southern states. Can't rely on centre for money.

    DisAgree Agree [6] Reply Report Abuse

  • Lawrence Lobo, Mangalore

    Thu, May 21 2020

    This is the last option for CM

    DisAgree [2] Agree [14] Reply Report Abuse

  • Alwin, Mangalore

    Thu, May 21 2020

    The borrowing interest is shown and not of repayment of loan or waiver of loan not stated

    DisAgree [2] Agree [7] Reply Report Abuse


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Title : Bengaluru: State keen on borrowing additional amount of Rs 15,000 crore


 
 
 
 

 
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