HUBLI: The Deputy Chief Minister, Siddaramaiah, has made it clear that implementation of the recommendations of the Nanjundappa Committee will depend on resource mobilisation.

Replying to questions by presspersons here on Thursday, Mr. Siddaramaiah said that taking into account its financial position now it is not possible for the State Government to make an extra allocation of Rs. 2,000 crores a year for seven years as recommended by the Nanjundappa Committee. But the Government has begun the process of implementing the recommendations in a phased manner.

Beginning made

A beginning has been made in the budget for the current year and the allocation will be increased next year. It is not possible to fix a time-frame for the implementation of the Nanjundappa Committee report, he said.

Mr. Siddaramaiah pointed out that the committee had looked into the imbalance in development throughout the State and not necessarily north Karnataka.

The Deputy Chief Minister, who holds the Finance portfolio, said that the Government has been taking steps to mobilise resources.

For example, it has brought down non-development expenditure from 62 per cent in the previous year to 45 per cent during 2004-05.

It has gone in for debt swapping by taking loans, now available at a lower rate of interest, to clear the debts that were attracting a high rate of interest.

This has resulted in a big saving in interest payments, he said.

Increase in revenue

There has been an increase by more than Rs. 1,000 crores in revenue from taxes, which has gone up to Rs. 15,847 crores as against the budget estimate of Rs. 14,957 crores for 2004-05. In excise revenue alone, the receipts had gone up by Rs. 500 crores, thanks to the new arrack policy under which tax has been reduced considerably and the rentals hiked from 3 per cent to 53 per cent in auctions.

The income from the commercial tax had gone up from Rs. 8,100 crores to Rs. 10,250 crores, registering a growth of 29 per cent. Karnataka, Mr. Siddaramaiah said, topped in tax realisation followed by Orissa. This resulted in the State Government limiting its borrowing considerably, he said.

Deficit

The steps taken by the State Government fetched an incentive from the Union Government to the tune of Rs. 262 crores.

The Fiscal Responsibility Act provided for limiting the deficit within 3 per cent for the current year while the State has been able to achieve this one year ahead of the target year, namely during 2004-05, he said.

It is because of this that the Government has been able to considerably increase the allocation to sectors such as social services and irrigationand take up many more pro-people programme such as providing rice at Rs. 3 a kg.

Printer friendly page  
Send this article to Friends by E-Mail

Karnataka

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous | Engagements |
Advts: Classifieds | Employment | Updates: Breaking News |